c:\test> BlueFish.exe
This application has failed to start because the application configuration is incorrect. Reinstalling the application may fix this problem.
Similar problem discussion about SxS (side-by-side) issue can be found here.
Another similar discussion I found from this link.
Anyway, I tried changing settings in my VS2005 which just worked fine, but not sure if its the correct solution. Here;s the settings as screenshots:
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