For that failure, it is usually a result of never having .NET 3.5 installed on your computer. You may have the newest .NET, which is 4.0, but you did not get to .NET 4.0 from updating, you never had .NET 3.5 ever installed. I have no idea why it would be giving that error though, considering my application only needs .NET 2.0 at the minimum, and it's now installed virtually in the program.
Try this, and let me know if it works. Uninstall all versions of .NET, remember which ones you have, and go to Microsoft to get the downloads to replace them all if you want. Then first thing first. Install THIS version of .NET 3.5 on your computer -
http://download.microsoft.com/downlo...dotnetfx35.exe
Don't worry, that is a download link direct from Microsoft, so it's clean. It's a version of .NET 3.5, and after installing it, then see if the program works. If so, I'll have to figure out why the hell the program is trying to get something from .NET 3.5 when it shouldn't be. Anyway, just let me know, and then if that works, you can go ahead and go to Windows Update and update your .NET through that, or find the .NET 4.0 download and install it.
It could also be your Anti-Virus program keeping it from working. I swear my own Anti-Virus will sometimes flag some of my builds, and I obviously know it's not infected, so I lower the amount of obfuscation some when compiling the program, which usually fixes the problem. But try disabling your Anti-Virus, or placing the program in an exception list.