.Net Deployment Error clr02r3

I have been fighting this problem for about 4 days. We built a ClickOnce .Net application using the SCSF/CAB model. We moved the complete development from Visual Studio 2005 / .Net 2.0 to Visual Studio 2008 / .Net 3.5. The application was installed via the ClickOnce deployment on some Tester's PCs. We had no issue under VS2005 but ran into this error using VS2008 for deployment.

Error:

Event Type: Error
Event Source: .NET Runtime 2.0 Error Reporting
Event Category: None
Event ID: 5000
Date: 4/7/2008
Time: 4:40:51 PM
User: N/A
Computer: L0008068
Description:
EventType clr20r3,
P1 integratedmodules.exe,
P2 1.0.0.0, P3 47fa723c,
P4 system.configuration,
P5 2.0.0.0, P6 471ebf00,
P7 496, P8 441,
P9 ioibmurhynrxkw0zxkyrvfn0boyyufow, P10 NIL.

For more information, see Help and Support Center at
http://go.microsoft.com/fwlink/events.asp.
Data:
0000: 63 00 6c 00 72 00 32 00 c.l.r.2.
0008: 30 00 72 00 33 00 2c 00 0.r.3.,.
0010: 20 00 69 00 6e 00 74 00 .i.n.t.
0018: 65 00 67 00 72 00 61 00 e.g.r.a.
0020: 74 00 65 00 64 00 6d 00 t.e.d.m.
0028: 6f 00 64 00 75 00 6c 00 o.d.u.l.
0030: 65 00 73 00 2e 00 65 00 e.s...e.
0038: 78 00 65 00 2c 00 20 00 x.e.,. .
0040: 31 00 2e 00 30 00 2e 00 1...0...
0048: 30 00 2e 00 30 00 2c 00 0...0.,.
0050: 20 00 34 00 37 00 66 00 .4.7.f.
0058: 61 00 37 00 32 00 33 00 a.7.2.3.
0060: 63 00 2c 00 20 00 73 00 c.,. .s.
0068: 79 00 73 00 74 00 65 00 y.s.t.e.
0070: 6d 00 2e 00 63 00 6f 00 m...c.o.
0078: 6e 00 66 00 69 00 67 00 n.f.i.g.
0080: 75 00 72 00 61 00 74 00 u.r.a.t.
0088: 69 00 6f 00 6e 00 2c 00 i.o.n.,.
0090: 20 00 32 00 2e 00 30 00 .2...0.
0098: 2e 00 30 00 2e 00 30 00 ..0...0.
00a0: 2c 00 20 00 34 00 37 00 ,. .4.7.
00a8: 31 00 65 00 62 00 66 00 1.e.b.f.
00b0: 30 00 30 00 2c 00 20 00 0.0.,. .
00b8: 34 00 39 00 36 00 2c 00 4.9.6.,.
00c0: 20 00 34 00 34 00 31 00 .4.4.1.
00c8: 2c 00 20 00 69 00 6f 00 ,. .i.o.
00d0: 69 00 62 00 6d 00 75 00 i.b.m.u.
00d8: 72 00 68 00 79 00 6e 00 r.h.y.n.
00e0: 72 00 78 00 6b 00 77 00 r.x.k.w.
00e8: 30 00 7a 00 78 00 6b 00 0.z.x.k.
00f0: 79 00 72 00 76 00 66 00 y.r.v.f.
00f8: 6e 00 30 00 62 00 6f 00 n.0.b.o.
0100: 79 00 79 00 75 00 66 00 y.y.u.f.
0108: 6f 00 77 00 20 00 4e 00 o.w. .N.
0110: 49 00 4c 00 0d 00 0a 00 I.L.....

This made no sence because it was intermitent and did not behave the same for different users on the same machine. After hours and hours of research and various deployment configuration attempts. I decided to revert to VS2005 deployment and it worked! The developed code was still in .Net 3.5 but deployed with VS2005. This might be an issue with how VS2008 publishes a ClickOnce application, maybe the signing of the app.config? It turns out that the other group, who had no problems, had not switched to VS2008 deployment yet.