merging proxy stub dll getting errors on build

I have created a simple ATL project with one interface in it. I selected to merge the proxy stub dll with my project dll in the wizard options. I add _MERGE_PROXYSTUB define to my project settings set my dlldatax.c file to not use precompiled header as per instructions given in my projects .cpp file

When I build I always get the following undefined externals. Why is this? Please help!! what am I doing wrong.
Linking...
Creating library Debug/test.lib and object Debug/test.exp
test.obj : error LNK2001: unresolved external symbol _hProxyDll
test.obj : error LNK2001: unresolved external symbol _PrxDllCanUnloadNow@0
test.obj : error LNK2001: unresolved external symbol _PrxDllGetClassObject@12
test.obj : error LNK2001: unresolved external symbol _PrxDllRegisterServer@0
test.obj : error LNK2001: unresolved external symbol _PrxDllUnregisterServer@0
Debug/test.dll : fatal error LNK1120: 5 unresolved externals
Error executing link.exe.

test.dll - 6 error(s), 0 warning(s)