I have done and published application and this is what I got just after the installation:

What can be wrong?

PLATFORM VERSION INFO
Windows : 5.1.2600.196608 (Win32NT)
Common Language Runtime : 2.0.50727.3603
System.Deployment.dll : 2.0.50727.3053 (netfxsp.050727-3000)
mscorwks.dll : 2.0.50727.3603 (GDR.050727-3600)
dfdll.dll : 2.0.50727.3053 (netfxsp.050727-3000)
dfshim.dll : 2.0.50727.3053 (netfxsp.050727-3000)

SOURCES
Deployment url : file:///C:/1/AvtoKrka.application
Application url : file:///C:/1/Application%20Files/AvtoKrka_0_0_0_66/AvtoKrka.exe.manifest

IDENTITIES
Deployment Identity : AvtoKrka.application, Version=0.0.0.66, Culture=neutral, PublicKeyToken=c8a67d17a3a72edc, processorArchitecture=msil
Application Identity : AvtoKrka.exe, Version=0.0.0.66, Culture=neutral, PublicKeyToken=c8a67d17a3a72edc, processorArchitecture=msil, type=win32

APPLICATION SUMMARY
* Installable application.

ERROR SUMMARY
Below is a summary of the errors, details of these errors are listed later in the log.
* Activation of C:\1\AvtoKrka.application resulted in exception. Following failure messages were detected:
+ Value does not fall within the expected range.

COMPONENT STORE TRANSACTION FAILURE SUMMARY
No transaction error was detected.

WARNINGS
There were no warnings during this operation.

OPERATION PROGRESS STATUS
* [26.11.2009 9:29:54] : Activation of C:\1\AvtoKrka.application has started.
* [26.11.2009 9:29:55] : Processing of deployment manifest has successfully completed.
* [26.11.2009 9:29:55] : Installation of the application has started.
* [26.11.2009 9:29:55] : Processing of application manifest has successfully completed.
* [26.11.2009 9:29:59] : Request of trust and detection of platform is complete.
* [26.11.2009 9:30:00] : Downloading of subscription dependencies is complete.
* [26.11.2009 9:30:00] : Commit of the downloaded application has started.
* [26.11.2009 9:30:01] : Installation of application has successfully completed.

ERROR DETAILS
Following errors were detected during this operation.
* [26.11.2009 9:30:01] System.ArgumentException
- Value does not fall within the expected range.
- Source: System.Deployment
- Stack trace:
at System.Deployment.Application.NativeMethods.CorLaunchApplication(UInt32 hostType, String applicationFullName, Int32 manifestPathsCount, String[] manifestPaths, Int32 activationDataCount, String[] activationData, PROCESS_INFORMATION processInformation)
at System.Deployment.Application.ComponentStore.ActivateApplication(DefinitionAppId appId, String activationParameter, Boolean useActivationParameter)
at System.Deployment.Application.SubscriptionStore.ActivateApplication(DefinitionAppId appId, String activationParameter, Boolean useActivationParameter)
at System.Deployment.Application.ApplicationActivator.Activate(DefinitionAppId appId, AssemblyManifest appManifest, String activationParameter, Boolean useActivationParameter)
at System.Deployment.Application.ApplicationActivator.PerformDeploymentActivation(Uri activationUri, Boolean isShortcut, String textualSubId, String deploymentProviderUrlFromExtension, BrowserSettings browserSettings, String& errorPageUrl)
at System.Deployment.Application.ApplicationActivator.ActivateDeploymentWorker(Object state)

COMPONENT STORE TRANSACTION DETAILS
* Transaction at [26.11.2009 9:30:01]
+ System.Deployment.Internal.Isolation.StoreOperationStageComponent
- Status: Installed
- HRESULT: 0x0
- Manifest: NBBZC29C.AXY.application
+ System.Deployment.Internal.Isolation.StoreOperationSetDeploymentMetadata
- Status: Set
- HRESULT: 0x0
+ System.Deployment.Internal.Isolation.StoreOperationStageComponent
- Status: Installed
- HRESULT: 0x0
- Manifest: AvtoKrka.exe.manifest
+ System.Deployment.Internal.Isolation.StoreOperationStageComponentFile
- Status: Installed
- HRESULT: 0x0
- File: AvtoKrka.ico
+ System.Deployment.Internal.Isolation.StoreOperationStageComponentFile
- Status: Installed
- HRESULT: 0x0
- File: AvtoKrka.mdf
+ System.Deployment.Internal.Isolation.StoreOperationStageComponentFile
- Status: Installed
- HRESULT: 0x0
- File: AvtoKrka.exe.config
+ System.Deployment.Internal.Isolation.StoreOperationStageComponentFile
- Status: Installed
- HRESULT: 0x0
- File: AvtoKrka_big.ico
+ System.Deployment.Internal.Isolation.StoreOperationStageComponentFile
- Status: Installed
- HRESULT: 0x0
- File: AvtoKrka_log.ldf
+ System.Deployment.Internal.Isolation.StoreOperationStageComponent
- Status: Installed
- HRESULT: 0x0
- Manifest: office.dll.genman
+ System.Deployment.Internal.Isolation.StoreOperationStageComponentFile
- Status: Installed
- HRESULT: 0x0
- File: office.dll
+ System.Deployment.Internal.Isolation.StoreOperationStageComponent
- Status: Installed
- HRESULT: 0x0
- Manifest: AvtoKrka.exe.genman
+ System.Deployment.Internal.Isolation.StoreOperationStageComponentFile
- Status: Installed
- HRESULT: 0x0
- File: AvtoKrka.exe
+ System.Deployment.Internal.Isolation.StoreOperationStageComponent
- Status: Installed
- HRESULT: 0x0
- Manifest: Microsoft.Vbe.Interop.dll.genman
+ System.Deployment.Internal.Isolation.StoreOperationStageComponentFile
- Status: Installed
- HRESULT: 0x0
- File: Microsoft.Vbe.Interop.dll
+ System.Deployment.Internal.Isolation.StoreOperationInstallDeployment
- Status: Installed
- HRESULT: 0x0
- AppId: file:///C:/1/AvtoKrka.application#AvtoKrka.application, Version=0.0.0.66, Culture=neutral, PublicKeyToken=c8a67d17a3a72edc, processorArchitecture=msil
+ System.Deployment.Internal.Isolation.StoreOperationSetDeploymentMetadata
- Status: Set
- HRESULT: 0x0
+ System.Deployment.Internal.Isolation.StoreTransactionOperationType (27)
- HRESULT: 0x0

Unfortunately, I don't think there a simple answer to this problem. I ran into this thread where a number of people reported problems and a "wild goose chase" ensued trying to pinpoint the problem. So, the thread is quite lengthy, but if you take the time to read through it, you might, hopefully, identify something that is relevant to your application's deployment:
ClickOnce-deployed application failure...

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