C1Dataset in WebContext

I posted in DataObjects but received no reply. I figured I would try here as well.

I have a web application that use C1WebDatasets and uses a DataLibrary which is in a seperate assembly. That DataLibrary has a method in the RemoteService that uses a C1DataSet to do some work. This assembly is shared with a windows app which is why it it using a C1DataSet. When I call this method I am getting an evaluation exception..

THIS EXCEPTION WILL NOT APPEAR IF YOU WAIT 10 SECONDS AND REFRESH THIS PAGE IN THE BROWSER. This web application was built with unlicensed version of C1DataObjects. It is functioning in evaluation mode.

C1DataObjects and C1WebDataObjects are both fully licensed. All the other use of C1WebDataObjects works fine and we don't see this error. I tried to get the license.licx to update by dragging a C1DataSet onto a component designer for a page. The license file did get another entry and I did a "build runtime licenses" in visual studio. This did not make the problem go away.

Any help on how I debug/fix this issue?