MonoTouch: #IF MONOTOUCH not used in Debug|Simulator

I have a region of code in a seperate project that is wrapped in:

#IF MYNICEMONOTOUCHDEFINE
Some non-Monotouch C# code here
#ENDIF

The linker fails when we compile in DEBUG/SIMULATOR saying that that code is not found in monotouch basically.

The linker works fine and ignores that code开发者_StackOverflow社区 when compiled to DEBUG|PHONE however.

Does the DEBUG/SIMULATOR build/linker not obey the #IF ? The IDE "ghosts" the code when in Debug|Phone mode, and un-ghosts when we switch to debug|simulator