Has anyone managed to use this component with Lazarus 4.2?
I don't know how to use this package, so I cannot follow your steps. But I just tested it for adding it to OPM, and had some issues:
When I check TaurusTLS in OPM and click "Install", the download and compilation are running fine, but when the IDE is rebuilt compilation aborts with the same error that you are reporting. I then manually loaded the runtime package (taurustlsrt.lpk) into the IDE ("Package" >"Open package file (*.lpk)", compiled it, then loaded the designtime package (taurusrtldsgn.lpk) and installed it ("Use" > "Install"), and now it worked fine. I find two components on the "TaurusTLS" palette, a TTaurusTLSServerIOHandler and a TTaurusTLSIOHandlerSocket.
Then I tried to run a Lazarus demo project and found TaurusFTPConsole in the demos folder. Compilation aborted with a "not found" error for one of the Indy units. Looking at the project options I saw that on my system the Indy units are not at the locations specified in the "Other unit paths". This is not the Lazarus way of handling dependant packages, anyway, and I removed the Indy units from "Other unit paths" and added the indylaz package to the requirements of the project.
This was accepted by the compiler, but now there was another error talking about "undefined symbol: WSRegisterCustompage" and many similar ones. This is typical of a command line program using the LCL and not having the "Interfaces" unit in the unit clause. I don't know where this project exactly needs the LCL, but it is strange that the indy package unit is in the uses clause of the project although it is not directly needed in this file (and Indy does depend on LCL). Removing this unit finally made the TaurusFTPConsole project compile and run.