If it is .int code then you do not use LITLINK as there is no link step involved with .int code.
Are you using a Net Express project?
What version of the Oracle client are you using?
You can set compiler directives in several places.
If you have multiple executables in your build window and they are all run as separate main programs then you can place INITCALL"ORASQLxx" as a project setting under Project-->Properties-->Project Directives.
If you have a single starting program in your application then you can set the directive directly at the top of the source file starting in column 7.
example if using Oracle 11:
$SET INITCALL"ORASQL11"
PATH can be set at the system level to include the Oracle bin folder or you can set this in the Net Express IDE under Project-->Properties-->IDE button under Environment section.
Example on my system this would be:
PATH
%PATH%;C:\app\crg\product\11.2.0\client_1\bin