C++ – Why won’t the VS2010 native C++ application suddenly start, giving a side-by-side error

I had to reinstall my system (Win7) after a hardware upgrade. Before the upgrade, I also ran Win7 and VS2010 and my application ran without a problem in both the release and debug versions. Now I compile and link it, but when I try to run it, I get:

The application has failed to start because its side-by-side configuration is incorrect. Please see the application event log or use the command-line sxstrace.exe tool for more detail.

The event log shows:

Dependent Assembly Microsoft.VC90.DebugCRT,processorArchitecture="x86",publicKeyToken="1fc8b3b9a1e18e3b",type="win32",version="9.0.21022.8" could not be found. Please use sxstrace.exe for detailed diagnosis.

for the particular executable. What is strange to me, is that I see the VS2008 runtime among the installed programs in the control panel. Even stranger is the fact that it used to work a week ago on my old installation. I had VS2008 there before I upgraded to VS2010 so maybe that's the reason. Anyway, I also don't understant why doesn't VS2010 link my binary against the newest (VC10) runtime libraries, instead relying on the (nonexistent?) VC9.0 ones. What can I do to get my application to run?

EDIT: I include the output from sxstrace here. There were a few references to the executable but they most look the same and I selected the 32bit one, since the application is built as 32bit:

F:\cci\Debug>sxstrace Trace -logfile:trace.etl
Tracing started. Trace will be saved to file trace.etl.
Press Enter to stop tracing…

F:\cci\Debug>sxstrace Parse -logfile:trace.etl -outfile:sxs.out
Parsing log file trace.etl…
Parsing finished! Output saved to file sxs.out.

The contents of sxs.out:

Begin Activation Context Generation.
Input Parameter:
Flags = 0
ProcessorArchitecture = Wow32
CultureFallBacks = en-US;en
ManifestPath = F:\cci\Debug\gui.exe
AssemblyDirectory = F:\cci\Debug\
Application Config File =
INFO: Parsing Manifest File F:\cci\Debug\gui.exe.
INFO: Manifest Definition Identity is (null).
INFO: Reference: Microsoft.VC90.DebugCRT,processorArchitecture="x86",publicKeyToken="1fc8b3b9a1e18e3b",type="win32",version="9.0.21022.8"
INFO: Resolving reference Microsoft.VC90.DebugCRT,processorArchitecture="x86",publicKeyToken="1fc8b3b9a1e18e3b",type="win32",version="9.0.21022.8".
INFO: Resolving reference for ProcessorArchitecture WOW64.
INFO: Resolving reference for culture Neutral.
INFO: Applying Binding Policy.
INFO: No publisher policy found.
INFO: No binding policy redirect found.
INFO: Begin assembly probing.
INFO: Did not find the assembly in WinSxS.
INFO: Attempt to probe manifest at C:\Windows\assembly\GAC_32\Microsoft.VC90.DebugCRT\9.0.21022.8__1fc8b3b9a1e18e3b\Microsoft.VC90.DebugCRT.DLL.
INFO: Did not find manifest for culture Neutral.
INFO: End assembly probing.
INFO: Resolving reference for ProcessorArchitecture x86.
INFO: Resolving reference for culture Neutral.
INFO: Applying Binding Policy.
INFO: No publisher policy found.
INFO: No binding policy redirect found.
INFO: Begin assembly probing.
INFO: Did not find the assembly in WinSxS.
INFO: Attempt to probe manifest at C:\Windows\assembly\GAC_32\Microsoft.VC90.DebugCRT\9.0.21022.8__1fc8b3b9a1e18e3b\Microsoft.VC90.DebugCRT.DLL.
INFO: Attempt to probe manifest at F:\cci\Debug\Microsoft.VC90.DebugCRT.DLL.
INFO: Attempt to probe manifest at F:\cci\Debug\Microsoft.VC90.DebugCRT.MANIFEST.
INFO: Attempt to probe manifest at F:\cci\Debug\Microsoft.VC90.DebugCRT\Microsoft.VC90.DebugCRT.DLL.
INFO: Attempt to probe manifest at F:\cci\Debug\Microsoft.VC90.DebugCRT\Microsoft.VC90.DebugCRT.MANIFEST.
INFO: Did not find manifest for culture Neutral.
INFO: End assembly probing.
ERROR: Cannot resolve reference Microsoft.VC90.DebugCRT,processorArchitecture="x86",publicKeyToken="1fc8b3b9a1e18e3b",type="win32",version="9.0.21022.8".
ERROR: Activation Context generation failed.
End Activation Context Generation.