hi yes you are right! I have placed this instruction in the local.conf file which resides in build/conf folder. I have removed it and the 'bitbake helloworld' worked fine.
One last question, do I have to remove this instruction ( INHERIT += "rm_work") when I am building individual recipes like the helloworld and then add it back when I build my whole image (bitbake core-image-full-cmdline) ? I really thank you so much for your help! its highly appreciated. I spent a whole day yesterday before I opened the topic here :) . I am a bit new to yocto!
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