What service packs do you have installed on the W2K machine? You must have at least SP4 installed to support the .Net Framework.
Also, is that the whole error message? Is the ClickOnce deployment actually working, but something else you have going on is not? Can you check and see if the deployed files are there in the user's profile?
Also, this is a Windows Forms application, and not a Windows service, right?
RobinS.
GoldMail.com