application deployment problems using latest MSVC service pack

The application I am developing worked on test machines before I
upgraded to MSVC service pack 1, now I get an error: "application has
failed to start because the application configuration is incorrect".

The way I handled it previously was to simply copy the relevant
redist
files in the "Visual Studio 8\VC\redist\" folder to the target
machine. The application worked fine for all machines which didn't
have MSVC installed.

Now when I use the same method (with the new redist files) I get the
error described previously. I have looked at the application
dependencies using depends.exe and it all seems fine.

Has anyone found a similar problem?

Thanks in advance