I am not overly familiar with this stuff. As I try to figure out. Images added to resources should be specified using relative path. If you try Visual Studio is smart enough to suggest. So the Source filed in the Property tab should like /YakshaTala;component/Resources/kanlogo.png YakshaTala is the root folder Resources is the sub folder The rest about deployment soon... It appears this is a common problem. The solution is here http://geekrick.blogspot.com/2008/08/frustrating-net-framework-sp1-issue.html and in many other places .Best way is to google the error message deleting application specific part in the error message. I am able to install my app.