As the exception says, it is possible that you are not using in the executable project any of the classes from the referenced assembly? In such cases the reference to this assembly is omitted and the configuration cannot be loaded. If this is the case, please make sure you are using at least one class from the model assembly.
Telerik OpenAccess ORM needs to know of all assemblies used by the application, which contains persistent capable classes. These assemblies are listed within the reference section in the configuration file. If such assembly is not referenced, the reference cannot be resolved, and “The config file reference for assemblyname <assemblyname> could not be resolved" exception will be thrown.
I recommend that you read this help article
which explains how to use configuration files for class libraries.
Hope that helps.
the Telerik team
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