Here is the correct answer. I had to fight this twice now and did not document it well enough, thinking for the first time that this was a one-time thing.
Put it in the SQL Server Bin folder for the server. for DEVELOPMENT place the copy in the Visual Studio folder,
something like: C: \ Program Files \ Microsoft Visual Studio 9.0 \ Common7 \ IDE \ PublicAssemblies
or Windows 7 64 bit C: \ Program Files (x86) \ Microsoft Visual Studio 9.0 \ Common7 \ IDE \ PublicAssemblies
usarian
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