interop type cannot be embedded use the applicable interface instead Visual Studio 2010

I came across this error when I tried to reference a dll which I used without any issues in other projects and other versions of Visual Studio.
I found the solution for this error on stackoverflow here
http://stackoverflow.com/questions/2483659/interop-type-cannot-be-embedded

If you do not get the steps in the above solution, the below images should help you out.