Presentation Error - SmartTarget Page

When I open an Webpage with SmartTarget configured, I am getting two different errors:

Error 1

First time I get this error:

Server Error in '/' Application.
--------------------------------------------------------------------------------
com/tridion/marketingsolution/profile/Contact
================================================
Some configured classpath roots cannot be found
================================================
ClassPath           : C:\tridion\Publicationsites\TestRD\staging\bin\bin

I am not sure how Line 2, comes into the picture, but when I add another bin folder within the already existing bin folder, the error goes. Is something wrong with any of the config file?

Error 2

When I open the page after I apply the workaround for the above error, I receive the following error

Unknown server tag 'smarttarget:Query'.
<smarttarget:Query View="lister" AllowDuplicates="true" Timeout="5000"
                  Publication="tcm:0-14-1" runat="server" Id="as"> 
Line 3: <smarttarget:Item runat="server" TemplateUri="tcm:14-1319-32"
                          ComponentUri="tcm:14-1321"></smarttarget:Item>

Where do I need to add the smarttarget tag? Should it be in the web.config file? Can you please share the syntax. I have tried to accurately implement the ST as mentioned in the live docs. Any area that I need to recheck?

Question 3

I am pasting a screenshot of my Compound Page Template below:

When I publish this page, the HTML markup present in the Main Page Design TBB is not published at all. Only the markup generated by the Add SmartTarget to Promotion TBB exist in the aspx Page.

<smarttarget:Query View="lister" AllowDuplicates="true" Timeout="5000"
                       Publication="tcm:0-14-1" runat="server" Id="as"> 
    <smarttarget:Item runat="server" TemplateUri="tcm:14-1319-32"
                              ComponentUri="tcm:14-1321"></smarttarget:Item> 

    <smarttarget:Promotions MaxItems="2" Region="sidebar" runat="server"> 
        <ItemTemplate> 
            <smarttarget:PromotionalItems runat="server"> 
                <ItemTemplate> 
                        <tridion:ComponentPresentation runat="server" 
                        PageURI="tcm:14-1119-64" 
                        ComponentURI="<%# Eval(&quot;ComponentUri&quot;) %>" 
                        TemplateURI="<%# Eval(&quot;TemplateUri&quot;) %>"/> 
                </ItemTemplate> 
            </smarttarget:PromotionalItems> 
        </ItemTemplate> 
        <FallbackContent> 
            <tridion:ComponentPresentation runat='server' 
                        ComponentUri='tcm:14-1322' 
                        TemplateUri='tcm:14-1323-32'/> 
        </FallbackContent> 
    </smarttarget:Promotions> 
</smarttarget:Query>

Is my implementation correct ?

That's a lot of questions in one entry, but I'll try to answer them here.

Looks like you don't have the right Tridion home directory and it ends up checking 'bin' under the current directory instead. See my blog post on the subject on how this is figured out (and thus how you can solve it): How Tridion Content Delivery loads configuration files (.NET)
This is standard .NET functionality. You can define a prefix in the same page or, as recommended, in the web.config. The exact markup for the web.config is: <add tagPrefix="smarttarget" namespace="Tridion.SmartTarget.Web.UI" assembly="Tridion.SmartTarget" />
Only one "Output" item is used from the package (the last one added). So the way you've split up your Dreamweaver Templates currently would indeed mean that you only get the output from "ST Page Region". I don't know what the intention was with it, so I can't suggest a good way to solve it aside from getting rid of it and putting the tcdl:region directly inside "Main Page Design TBB".

Good luck with it :)