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The Installer recommends using the GAC for the X#-Runtime, I would recommend not to use it and verify that no DLLs are below C:WindowsMicrosoft.NETassemblyGAC_MSILXSharp.RT. Of course initially it is easier for starting and compiling. But if you have the discipline to copy the correct runtime dlls into every exe directory you have together with the compiling of the projects you have the following advantages:
- You can have different versions of programs not interfering with other versions or the newest X#-Version.
- You have nearly the same situation on your development machine as on the customer machines: If the program is working on your computer and all dlls are loaded from the same directory, then most probably everything exists what is needed on the final machine. I verify the loading dlls with "Process Explorer" from Sysinternals.com

Hi Arne, yeah, not putting the X# runtime in the GAC offers far better flexibility and total control on where and which runtime dlls you use etc. But , on the other hand, most people do not need to use different versions of the runtime at all, so in most cases it is better to use the default option, which is the simplest way to deal with the runtime dlls.