LC.exe grief with Graphics Mill after upgrading to .NET 4

Anyway, the initial error I'm seeing across all our projects looks something like this:

CompileLicxFiles:
  C:\Program Files (x86)\Microsoft SDKs\Windows\v7.0A\bin\NETFX 4.0 Tools\LC.exe /target:Client.dll /complist:Licenses.licx /i:P:\Components\Aurigma\DLLs\Aurigma.GraphicsMill.dll
LC : error LC0000: 'Could not load file or assembly 'Aurigma.GraphicsMill' or one of its dependencies. Operation is not supported. (Exception from HRESULT: 0x80131515)'

I did some research on the "Operation is not supported" error and it appears to be related to us having the DLL on a network-mounted drive. Even though everything worked fine before the upgrade, and even though I have that drive set to full trust in the .NET SDK util, I decided to try going local just to see if it would fix the error. I cleaned my solution and changed the reference to be local, but now I'm seeing a different error:

CompileLicxFiles:
  C:\Program Files (x86)\Microsoft SDKs\Windows\v7.0A\bin\NETFX 4.0 Tools\LC.exe /target:Client.dll /complist:Licenses.licx /outdir:obj\Debug\ /i:"C:\Program Files (x86)\Aurigma\Graphics Mill 5.5 for .NET\Binaries\Aurigma.GraphicsMill.dll"
LC : error LC0000: 'Could not load file or assembly 'Aurigma.GraphicsMill' or one of its dependencies. Could not find or load a specific file. (Exception from HRESULT: 0x80131621)'

If I completely remove the Licenses.licx file, the project builds just fine and Aurigma works great. I'd like to keep my license in the resources file though as it seems that's the best place to store it to ensure that Graphics Mill never goes into the demo mode functionality.

Google turns up very little for these issues and I've spent way too much time trying to figure this out. Any ideas on how I can fix this issue or what these errors mean?