Troubleshooting: .Net 2.0 Setup requires .Net 4.0 Runtime
I created the application.. I created the setup project ... fixed some minor issues and there... cleaned some code... and finally the build succeeds... and I have the application with me...
I test it on my machine and everything goes smooth and I love it... Now here's the thing... I run it on my server which by the way is running Windows Server 2008 and I receive the lovely pop-up as shown below:


Yes my project needed .Net 2.0 framework but that never explains the same generalization is going to be applied by VS 2010 now... is it?
That question was answered by the properties windows when checked for .Net dependency. Take a look:

Hope this helps...