I have solved my problem. I deleted my form and then compiled my solution and then added a form as you suggested. In the toolbox I created a new tab and added a new component from 'Choose Item...' In this dialog i searched for my created component under the appropriate folder and navigated to bin\Debug. In this folder I opened LabelTextbox.dll. This successfully added my component to the toolbox.
I tried this method before I added a form but before I compiled my solution and this did not work. But after I tried what you suggested, compiling the solution and then adding a form, I was able to find and add the component to the toolbox.
Lucy
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