I want to compile App_GlobalResources/Strings.resx into my assembly (and eventually use satellite assemblies for Strings.es.resx, Strings.fr.resx, etc.) bu
Here's a good starting point http://odetocode.com/Blogs/scott/archive/2009/07/16/resource-files-and-asp-net-mvc-projects.aspx
I setup a project just like you mentioned and got precisely the same error when I deployed to IIS6. Changing Custom Tool to PublicResXFileCodeGenerator and Custom Tool Namespace to Resources per Scott's suggestions cleared it right up.
I'd also follows Scott's lead with respect to eliminating App_GlobalResources but I got it to work just fine. That might be a matter of personal preference.