Its easy to do, but not obvious to locate, at least to me. It took a while for me to find, so I thought let’s log it, in case if I need it in future, or someone else might need it. I need to create setup that depends on .NET framework 2.0. instead of 3.5 which is default in VS.NET 2008.

After creating setup and deployment project, double click on dependency of .net framework in solution explorer:

Now, you should be able to see launch condition for .net framework in “Launch Conditions” tab. Until you double click for the first time, node do not appear in launch conditions. And that’s where I wasted some hours:

Select the node and see the property window, where you will find the answer of the question: