I wrote an app that can install and work on my development PC (a Window 7).
The "TryCathcWhen"-related line makes me think about some unhandled exception on startup, or an exception is being thrown in a catch block on startup.
Seeing your startup code would be helpful.
This is really a generic error. In my case freshly installed application failed to create its own event source due to insufficient permissions. Resolved (ugly one) by running the app one time in "as admin" mode. Make sure that all inner exceptions are handled. Events is also a good source of information.