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Just wondering, if I obfuscate my DLL, I know it's code cannot be extracted, at least not without some great knowledge I don't know, but anyway, that's not the point. Is it possible to just use that obfuscated DLL just by adding a reference to it in your project properties?
Of course. What use would an obfuscated library be if it couldn't be referenced? The purpose of obfuscating is that you can safely give the library to someone else so that they can reference it without fear that they will be able to easily steal your source code. Use but not abuse.
Hmm, so if I'd want to use it by myself only, how would that be achieved? Like encrypting it or using some other method (don't know about encrypting, but I'm thinking if I encrypt it, it might not work when I add it as a reference, I don't really know).
I'm not sure that you really can stop others using your library other than by requiring a license key. The thing is, who is going to know enough about your library to know that it will be useful to them anyway? You could also think about using ILMerge to merge the DLL into your EXE and deploy them as a single assembly.
Yeah, I'd guess that is the best bet :)