I am using WiX 3.5.1930 in Visual Studio 2010, targeting the .NET Framework 3.5. (Later weekly builds of WiX seem to be very broken with respect to their custom action temp
I just found the same issue (using the correct .CA.dll file) and in my case it was because I wasn't using a static method. I had this:
public ActionResult MyMethod(Session session)
Instead of this:
public static ActionResult MyMethod(Session session)
After changing the method it worked just fine.
Hope it helps someone.