Error referencing SharePoint Client DLLs in Silverlight

Scenario:
I build up a new VM and was experimenting with Silverlight and SharePoint. I created a new Silverlight Application Project in Visual Studio. Then I tried adding the client object model dlls.

Microsoft.SharePoint.Client.Silverlight.dll
and
Microsoft.SharePoint.Client.Silverlight.Runtime.dll

located at "C:\Program Files\Common Files\Microsoft Shared\Web Server Extensions\14\TEMPLATE\LAYOUTS\ClientBin" and surprisingly got this



Sometime your project build just fine but you get referencing error at run time, something like this.



Solution:
Two step solution was
1. Copy both the binaries from
"C:\Program Files\Common Files\Microsoft Shared\Web Server Extensions\14\TEMPLATE\LAYOUTS\ClientBin" to "C:\SilverlightClientOM" folder.

2. Reference from the new folder