help: simple csc works in 1.1 but not 2.0 framework

I'm pulling my hair out! Is this a bug??

Scenario - boiled down as simple as I can make it.

1. Created 2.0 console app.
2. Added reference: (COM tab) "Microsoft CDO for Windows 2000
Library"
---- This adds CDO and ADODB references to the project
3. Added a few lines of code (see below)
4. Compiles just fine from VS 2005. (puts Interop.CDO.dll and
interop.ADODB.dll in debug dir.

5. If I copy the code and the Interop.CDO.dll and interop.ADODB.dll to
a single directory and run csc on it, framework 1.1 csc compiles fine,
2.0 csc gives errors acting like the ref is not there.

Code ------------------------

using CDO;
using ADODB;

public class XXXX
{
static void Main()
{
CDO.Message cdoMessage = new CDO.MessageClass();
CDO.Configuration configuration = new CDO.ConfigurationClass();
configuration = cdoMessage.Configuration;
ADODB.Fields fields = configuration.Fields;
}
}

ERROR from CSC -------------------------

Microsoft (R) Visual C# 2005 Compiler version 8.00.50727.42
for Microsoft (R) Windows (R) 2005 Framework version 2.0.50727
Copyright (C) Microsoft Corporation 2001-2005. All rights reserved.

Mailer.cs(23,7): error CS0012: The type 'ADODB.Fields' is defined in an
assembly
that is not referenced. You must add a reference to assembly
'ADODB,
Version=7.0.3300.0, Culture=neutral,
PublicKeyToken=b03f5f7f11d50a3a'.
Interop.CDO.dll: (Location of symbol related to previous error)
Mailer.cs(23,29): error CS0266: Cannot implicitly convert type
'ADODB.Fields []'
to 'ADODB.Fields [z:\test\Interop.ADODB.dll]'. An explicit
conversion
exists (are you missing a cast?)

--------------------------------

Any kind sole have an idea on what the issue is or how I can fix
it?????????????????

All advice appreciated. Thanks.