Trouble with device initialization

So I wanted to learn how to use DirectX:
I downloaded VC# 2005 express, and the Dec. 2005 DirectX SDK and installed them.
I started reading through and coding along with Derek Pierson's Tutorial found here.

I was all set until I got to the Device initialization part (A depressingly early stage in the tutorial) because I cannot successfully build the code. The error occurs when I try to make the global device object.
The Error:

Error 1 The type 'Microsoft.DirectX.Direct3D.Device' exists in both 'c:\WINDOWS\Microsoft.NET\DirectX for Managed Code\2.0.0.0_x86\Microsoft.DirectX.dll' 'c:\WINDOWS\assembly\GAC\Microsoft.DirectX.Direct3D\1.0.2902.0__31bf3856ad364e35\Microsoft.DirectX.Direct3D.dll'

I have references to both DirectX and Direct3D, and have

using Microsoft.Samples.DirectX.UtilityToolkit;
using Microsoft.DirectX.Direct3D;

I read that one of the major advantages of managed code was that having duplicate DLLs was no longer a problem. What gives