[PowerGeopak/MicroStation SS10 v08.11.09.918 VB .NET COM] Primary Reference Interop.MicroStationDGN, Version=8.0.0.0 exception

I'm upgrading a VB .NET COM based SS4 addin to SS10. When compiling I get the following warning:

Warning
The primary reference "Interop.MicroStationDGN, Version=8.0.0.0, Culture=neutral, processorArchitecture=MSIL"
could not be resolved because it has an indirect dependency on the .NET Framework assembly "mscorlib, Version=4.0.0.0,
Culture=neutral, PublicKeyToken=b77a5c561934e089" which has a higher version "4.0.0.0" than the version "2.0.0.0" in the current target framework.

To me this is saying the Interop.MicroStationDGN is depends on a .NET 4 library, but I have to target 3.5 for the addin.

 Since it's a warning it still compiles but during the running of the addin of course it throws an exception:

System.IO.FileNotFoundException: Could not load file or assembly 'Interop.MicroStationDGN, Version=8.0.0.0, Culture=neutral, PublicKeyToken=null' or one of its dependencies. The system cannot find the file specified.
File name: 'Interop.MicroStationDGN, Version=8.0.0.0, Culture=neutral, PublicKeyToken=null'

Any ideas how to fix this one?