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COM DLL from .Net

I am about to write a .Net application (C#, VS2012, Framework 4.0) where I want to use a COM DLL.  I am familiar with Interop only in the sense of adding references to things like Excel.

In order to reference it in my project, does the COM DLL need to be registered on my development machine?  Currently I get an error when trying to reference it (could not be added, make sure it's a valid COM assembly, etc.)

When I deliver the finished application to a client site, does the COM DLL need to be registered on the client machine, or is that what Interop is for -- to avoid that?

Thank you.
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Thanks, guys