I started VS 2010 C#. In my application, I set a reference to your DLL (ChilkatDotNet4.dll)
After I compiled my project, I saw, that there is a local copy of your DLL under the path of /application/bin/release. So I think, if I would deploy my application, I have to deploy the DLL too in the same directory where my exe will be. If I set “local copy” to false, I will get an exception.
Yes, you certainly need to deploy the ChilkatDotNet4.dll with your application, unless it's pre-installed in the GAC on the computer where your app will be deployed.