Side-by-side configuration is incorrect solution

I found this problem after upgrading a C# application from Visual Studio 2005 to Visual Studio 2008 and wanted to share the solution.

When running the application after compiling it in 2008 I get this error:

The application has failed to start because its side-by-side configuration is incorrect. Please see the application event log for more detail.

The application event is:

Event ID: 10

Source: SideBySide

Activation context generation failed for "D:\Sample.exe".Error in manifest or policy file "D:\Sample.exe.Config" on line 2. The application config file root element must be configuration.

Here is line 2 in the Config file:
<configuration xmlns="http://schemas.microsoft.com/.NetConfiguration/v2.0">

The solution is to change this line to:
<configuration>