If you're using Visual Studio, I recommend you use its features rather than trying to make an end run around the system. This will help you avoid future headaches.
In VS2008, the "Add" submenu isn't where you add a reference. Right below it, you should see an "Add Reference..." menu option. You want that one. You can also right-click the "References" project node, and the "Add Reference..." menu option shows up there, too. And as skatamatic pointed out, the "Project->Add Reference" menu bar option also works. Any of these should allow you to add a reference to the Excel PIA.