wondering the MS newsgroups I found this:

(a) DbgProxy & Msvcmon are meant only for native applications. You don't
need to start them for a C# App.
(b) To debug a C# App, install the remote debugger, make sure you are a
valid user, basically set up the machine as described in docs.

(c) Now take your C# App, you can copy it to the remote machine, run it
there.
(d) From your devenv machine, do Tools->Debug Processes
(e) In the processes dialog that comes up, set Transport=default, machine
name= your remote machine.
(f) You should see all processes on your remote machine assuming your setup
in (b) was ok. Just select your C# App, and attach
(g) Now you can set BP in your source on your local machine, and work with
the app on the remote machine, the bp will be hit and you will be able to
step through the code and basically do everything you do while local
debugging.

(c) Alternately, you can do this : copy the project to the remote machine
(d) Share out the folder so your local machine can see it (give write
access)
(e) Open the project on the remote machine in devenv on your local machine
(f) Set enable remote debugging=true, remote machine name=your remote
machine
(g) On the same page, set Debug mode = program, start application=exe path
on the remote machine. (C:\temp\app\bin\debug\app.exe, where C:\... is where
the app was copied on the remote machine). Similarly set working folder =
folder of exe on remote machine.
(h) Now if you start debugging, the app will launch and run on remote
machine, while you debug it from the local machine.