environment: Visual Studio 2008, .NET/C# Project Targeting Framework 2.0, Standard Setup Project
problem: Setup always requests framework 3.5
solution
- All deployed projects must target framework 2.0
- Prerequistes of setup project must be 2.0 (not 3.5). ATTENTION I couldn't change this separately for Release build and had to this manually using notepad/gvim
- Launch condition must be changed to 2.0 (I had to clean and rebuild a couple of times until it let me select 2.0)
http://www.eisber.net/blog/archives/53
http://www.codeproject.com/KB/dotnet/targetnet2fromvs2008.aspx?print=true (great)