Thanx ... gave it a try and found that after the publish I needed a new folder/file setup in the setup.exe folder. I downloaded and placed a 2.0.50727.26 version of dotnetfx\dotnetfx.exe  --  installation started on double click of setup.exe but after .NET 2.0 framework install completed I got an error from my application's install. The error is listed below. Bottom line for me at this point is thinking there is no funcitonong Publish capability with RC1. There also appears to be no .NET 2.0 framework you can install that is of a same version level as that you are building against.

PLATFORM VERSION INFO
 Windows    : 5.1.2600.131072 (Win32NT)
 Common Language Runtime  : 2.0.50727.26
 System.Deployment.dll   : 2.0.50727.26 (RTM.050727-2600)
 mscorwks.dll    : 2.0.50727.26 (RTM.050727-2600)
 dfdll.dll    : 2.0.50727.26 (RTM.050727-2600)
 dfshim.dll    : 2.0.50727.26 (RTM.050727-2600)

SOURCES
 Deployment url   : file:///Z:/Display%20&%20Print%20Sample.publish/Display%20&%20Print%20Sample.application

ERROR SUMMARY
 Below is a summary of the errors, details of these errors are listed later in the log.
 * Activation of Z:\Display & Print Sample.publish\Display & Print Sample.application resulted in exception. Following failure messages were detected:
  + Exception reading manifest from file:///Z:/Display%20&%20Print%20Sample.publish/Display%20&%20Print%20Sample.application: the manifest may not be valid or the file could not be opened.
  + Deployment manifest is not semantically valid.
  + Manifest identity has one or more invalid characters: Display & Print Sample.application.

COMPONENT STORE TRANSACTION FAILURE SUMMARY
 No transaction error was detected.

WARNINGS
 There were no warnings during this operation.

OPERATION PROGRESS STATUS
 * [10/23/2005 5:11:39 PM] : Activation of Z:\Display & Print Sample.publish\Display & Print Sample.application has started.

ERROR DETAILS
 Following errors were detected during this operation.
 * [10/23/2005 5:11:40 PM] System.Deployment.Application.InvalidDeploymentException (ManifestParse)
  - Exception reading manifest from file:///Z:/Display%20&%20Print%20Sample.publish/Display%20&%20Print%20Sample.application: the manifest may not be valid or the file could not be opened.
  - Source: System.Deployment
  - Stack trace:
   at System.Deployment.Application.ManifestReader.FromDocument(String localPath, ManifestType manifestType, Uri sourceUri)
   at System.Deployment.Application.DownloadManager.DownloadDeploymentManifestDirectBypass(SubscriptionStore subStore, Uri& sourceUri, TempFile& tempFile, SubscriptionState& subState, IDownloadNotification notification, DownloadOptions options, ServerInformation& serverInformation)
   at System.Deployment.Application.DownloadManager.DownloadDeploymentManifestBypass(SubscriptionStore subStore, Uri& sourceUri, TempFile& tempFile, SubscriptionState& subState, IDownloadNotification notification, DownloadOptions options)
   at System.Deployment.Application.ApplicationActivator.PerformDeploymentActivation(Uri activationUri, Boolean isShortcut)
   at System.Deployment.Application.ApplicationActivator.ActivateDeploymentWorker(Object state)
  --- Inner Exception ---
  System.Deployment.Application.InvalidDeploymentException (ManifestSemanticValidation)
  - Deployment manifest is not semantically valid.
  - Source: System.Deployment
  - Stack trace:
   at System.Deployment.Application.Manifest.AssemblyManifest.ValidateSemanticsForDeploymentRole()
   at System.Deployment.Application.Manifest.AssemblyManifest.ValidateSemantics(ManifestType manifestType)
   at System.Deployment.Application.ManifestReader.FromDocument(String localPath, ManifestType manifestType, Uri sourceUri)
  --- Inner Exception ---
  System.Deployment.Application.InvalidDeploymentException (ManifestComponentSemanticValidation)
  - Manifest identity has one or more invalid characters: Display & Print Sample.application.
  - Source: System.Deployment
  - Stack trace:
   at System.Deployment.Application.Manifest.AssemblyManifest.ValidateAssemblyIdentity(DefinitionIdentity identity)
   at System.Deployment.Application.Manifest.AssemblyManifest.ValidateSemanticsForDeploymentRole()

COMPONENT STORE TRANSACTION DETAILS
 No transaction information is available.