Try a few simple solutions to attempt to rectify the problem:
1. Clean the solution and rebuild.
2. Ensure the assembly is registered in the GAC. C:\Windows\assembly
3. Reinstall the .NET 2.0 framework.
http://www.microsoft.com/downloads/details.aspx?familyid=0856eacb-4362-4b0d-8edd-aab15c5e04f5&displaylang=en
Hope this helps!