The Griaule fingerprint SDK is good and works well.  However sometimes the documentation is lacking.  After some trial and error and hair pulling I finally figured out the correct steps.

1) Install the Griaule USB driver: Griaule_FingerCap_USB_Driver_1.2_Installer.exe from http://www.griaulebiometrics.com/page/en-us/downloads
   You must use this driver and not the driver supplied with the reader hardware. If vender driver already installed, remove it first.  Your instructions for your application should have users
   install this first before your application.  I am not sure if it is possible to include this in the app setup (or ClickOnce) or not.  If it is, please let me know how to do it.

2) Add GrFinger.dll, GrFingerLicenseAgreement.txt, pthreadVC2.dll and CapPluginFingercap.dll to the project and mark them "Content" and "Copy if newer".
   Note: The GrFingerLicenseAgreement.txt license file is at C:\ProgramData\Griaule on Vista. You can use the Trial license for testing your deployment.

3) Create a new Project. Add a Reference to the .Net library GriauleFingerprintLibrary.dll to your project. This is from the 2009 sdk.
   On my system it is located at C:\Program Files\Griaule\Fingerprint SDK 2009\bin\GriauleFingerprintLibrary.dll
   If creating a managed C# or VB app, I recommend using this managed .Net library instead of the ActiveX control.  You *do not need to add the ActiveX control to your toolbox.  Just add the
   reference and add your using statements such as:

using GriauleFingerprintLibrary;
using GriauleFingerprintLibrary.Exceptions;
using GriauleFingerprintLibrary.DataTypes;

4) If using ClickOnce, make sure all the above files are "Included" as Application Files. If not using ClickOnce, the same files must be deployed with your application in the application directory.
   Application Files to include:
   ============================
   GrFinger.dll
   pthreadVC2.dll
   GrFingerLicenseAgreement.txt
   CapPluginFingercap.dll
   GriauleFingerprintLibrary.dll

5) Compile or publish your app.

Hope this helps someone else.  I will publish a minimalist WinForm's app showing all this working with ClickOnce.  Maybe even a console app.

I see that DigitalPersona has a free sdk if you use there hardware.  Have not tried it.  If you have, please let me know how good it works.  Thanks.

William