When you try to install a ClickOnce VSTO application you got the follow error saying your .NET Framework version is not correct (however Windows 7 ships with .NET 3.5 SP1)
Thanks to a blog post from the VSTO product team, I realize that Windows 7 RC left our a file in C:\Program Files\Reference Assemblies\Microsoft\Framework\v3.5\RedistList
When I start up my Windows 2008 VPC, I see there is a FrameworkList.xml file inside
So I copy it out from my VPC, then I restart Visual Studio (it is not mentioned in the blog) and republish the VSTO app. The installer is now working!