Remoting from Embedded controls in IE

We are trying to moving a windows based application which uses remoting events to our Intranet. We used an interface approach and it worked fine in the windows world. Just to test it on IE I tried to create a simple remoting call but each time I try to create the remotable object on the client I get an "System.IO.FileLoadException: the Found private Assembly, 'Proxy', was located outside the application base", proxy being the name of the interface assembly that I use. Has any one used remoting from an Embedded control? Of course everything works fine in Windows. I do have a config file that usercontrol.dll.config which has the following to download the proxy assembly.
<?xml version="1.0" encoding="utf-8" ?>
<configuration>
<assemblyBinding xmlns="urn:schemas-microsoft-com:asm.v1">
<dependentAssembly>
<assemblyIdentity name="Proxy" culture="neutral" />
<codeBase version="1.0.0.0" href="http://localhost/Proxy.dll" />
<publisherPolicy apply="no" />
</dependentAssembly>

</assemblyBinding>

</configuration>

thank,
Deva

[1151 byte] By [Deva_m] at [2008-1-10]