Sorry Bianca, not quite clear on what your question is.
If you add a reference to your project, you have to tell it where the dll is. Once you do that, it copies a local copy to your project (this isn't the case with the GAC, but thats a whole other topic).
Now, if you did use the namespace that you mentioned, as long as you have a reference to the assembly in your project, you don't have to worry at all about moving the assembly yourself; vs.net should do that for you.
I *think* your asking if you need to put the files you want in the same directory as your project, and the answer is no: it'll get copied over.
hth
D