See Using the samples for help on compiling, setting up the debugger, and running the sample (either an exe or dll).
Open the solution using Visual Studio 2005.
Build the solution to make the Dynamic Display Compass command dll. You will need to use this command in an application with a MapControl and a ToolbarControl.
Add the command to the ToolbarControl. The command can be found in the .NET Samples category with the name Dynamic Display Compass.
Run the application and click the Dynamic Display Compass command to add the compass object to the map. The map switches into dynamic mode and adds the compass to the map. You will notice that the compass rotates with the map when rotated.