Honestly im not sure what you mean by GAC.

But i have the assembly imported as local copy and the DLL exists in the same dir as the source and also a copy in the 'bin\Debug\' Dir for the project

It imports fine, no errors at all. i can browse the clr interface for the DLL all that works fine, The ide will even work with the DLL showing procedures functions etc in the Code Completion.

Its just when you actually try to compile that it throws a slight fit with the above errors.

Same DLL used works with the C# builder built into Delphi 2005 so its kinda a stumping problem.