It\'s a beginners question, but...
Image of dll reference and dll included in project file http://a3.vox.com/6a00c2251e5b66549d00e398ca81eb0003-pi
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Having those in your project and output directory allows the final executing code to reference them without any issues running on different machines.
It sounds as it they put the reference dlls in the project directory, reference them from there, and also include them in the project. That way, when the project directory is copied, the reference dll will be copied with it. Additionally, if the reference dll is missing, the project will complain in Visual Studio.