Issue
I wrote a C++ project called \'Foo\' using Microsoft Visual Studio 2005 Verison 8.0.50727.762 (SP.050727-7600) on Windows XP Professional Vers
We have really following problem here: the application executable references dlls using manifest machinery. In the deep past application authors just copied required dll's into system directories. Unfortunately this caused so called "dll hell" problem when overwriting older dll versions by incompatible newer one could make applications stop working. MS then came up with with versioning idea (winsxs).
Unfortunately this is quite complex machinery and it is definitely not a good idea to try manually installing dlls (assemblies) into the sxs folder. Installing so called "redistributable packages" is not a perfect solution either.
Additionally, this cannot help when we want debug versions. As MS prohibits distribution of debug versions of supporting dlls, "redistributable packages" won't install them. (Note that the assembly id depends on current subversion of VS2005 and is related to installed supporting libraries.)
Usually, the VS installer adds the required assemblies to the system, but after some time installation of updates or newer SDK's and tools may damage this correct state.
Let's assume we have this situation - our debug libraries are no longer integrated into system. Suppose we have given workspace with project A and active debug configuration giving not working application. We can then create installer project, say C in current workspace, add our application (or strictly, project with active configuration) to it. Setup installer project to put our executable in some place (desktop is the right place regarding this situation) enable dependencies check and some other minor properties. Then build project C and run installer (or "install" from VS using context menu). Now your application and other created with debug dll libraries start to work.
Beware when you run installer with "remove" option you came to previous situation. Here is good article related to distribution topic: http://blogs.msdn.com/b/vcblog/archive/2007/10/12/how-to-redistribute-the-visual-c-libraries-with-your-application.aspx.
If you have some other applications and want to deploy them simply by copying, maybe on non development machine without installed VS, you may create dummy project together with appropriate configuration and installer for it . You then install it once on each machine and then copy executable(s) you are working on.