Deferred managed code custom action fails

I am trying to get a managed code deferred custom action to execute.

I have even tried the sample events from the SampleClassLibrary. The C# code compiles correctly but when I execute the log file indicates that it cannot find the file InstallShield.Interop.Msi.dll.
I added a reference to the ISClrWrap table for my custom action to the InstallShield.Interop.Msi.dll file. The row looks like this.
Action=<customActionName>, Name="Dependency0", Value=<ISProductFolder>\system\InstallShield.Interop.Msi.dll

The sample wrapperMSI works correctly and can find this file with the same row description.

What is required for deferred custom actions to include the InstlalShield.Interop.Msi.dll file?