Hi,
What are you building your application as?
x86 => Will require Client32 and LocalServer32 directories within the ArcGISRuntime1.0 directory.
x64 => Will require Client64 and LocalServer64 directories within the ArcGISRuntime1.0 directory.
Any CPU => Will require Client32 & LocalServer32 OR Client64 & LocalServer64 directories within the ArcGISRuntime1.0 directory depending on the OS architecture of the machine.
But you should not be manually creating those directories - you use the Deployment Tool to build your runtime deployment with the appropriate components for your chosen architecture(s).
Cheers
Mike