Hi All
I managed to "solve" this problem by taking the reference in the reference directory of the site and sub sites (DAL and DAL Generic + my own sites on top) and change the property Specific Version to true.
However, the true problem occurs when you have your own site with and bll layer and both these refers to the sd.llblgen. references - seems like some bug or so. It took me two whole days to get my environment right.
Note further that in the above it happens the moment you add the llbl datasource to your page(s).
Hope it helps
Helga