Team City 7 can't find DLL's in a project

I am trying to get our solution to work with Team City 7. I'm running into problems when Team City builds from the main solution (.sln) file. Once it reaches the project where we keep our unit tests, Team City spits out an error about not finding all sorts of DLL's like Gallio.dll, mbunit.dll etc.
Locally this project compiles fine though and all the references to these DLL's are set correctly. Why does Team City run into issues?
Error looks like this:

General Logic\Language\LanguageLogicTests.cs(6, 7): error CS0246: The type or namespace name 'Gallio' could not be found (are you missing a using directive or an assembly reference?)

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Hi Patrick

Please check you're using relative paths to these dlls, and they are available within the project.
I see your second question in http://devnet.jetbrains.net/thread/434828 and suppose both errors have the same reasons.

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