ERROR:"Application failed to initialize properly (0x000007b)"

Hi,
ERROR:"Application failed to initialize properly (0x000007b)"
I have developed an appl in VS2005, net2.0 and when i tried to install it on another machine same OS (XP pro sp2) through setup.exe,it try to install 'dotnetfx.exe' file version 2.0 first and gives error.I try to install mdac28(mdac_typ.exe,version 28.1) manually but gives error as
"this setup does not support installing on this OS" even though the OS is same.
Then I installed the same whole vs2005 0n the other macine with same OS(XP pro sp2).I installed my appl, it successfully gets installed but when i ran it, it gives ERROR:Application failed to initialize properly (0x000007b)".
First of all i wanna fix the problem that my setup.exe should be able to install
dotnetfx.exe(only the framework) and mdac_typ.exe(mdac28) instead of installing the whole VS2005 on client's machine.
Then i wanna fix the problem of getting the above mentioned ERROR "failed to..."
I need urgent help.
Regards!
Ayyaz