C# Error in NotifyIcon App

Question

Recently I just started using C# again, so I was brushing up on what I knew and experimenting with some new options. One of those is the Component NotifyIcon. There are not many tutorials that deal with compiling C# with csc.exe, so I resorted to Microsoft's Code. I got the source for their example, and attempted to compile it. ( csc /target:winexe Form1.cs ) It compiled perfectly, but when I ran it I got a nondescript error that it wanted to send to Microsoft. Details I got were:

EventType : clr20r3     P1 : form1.exe     P2 : 0.0.0.0     P3 : 46109285    
P4 : mscorlib     P5 : 2.0.0.0     P6 : 4333ab80     P7 : 32f8     P8 : d8    
P9 : system.io.filenotfoundexception

I have the env. path to the framework correct.

Using v2.0.50727 of .Net Framework.

Sourcecode:

using System;
using System.Drawing;
using System.Windows.Forms;
using System.ComponentModel;
namespace Form1{
public class Form1 : Form
{
    private NotifyIcon notifyIcon1;
    private ContextMenu contextMenu1;
    private MenuItem menuItem1;
    private IContainer components;

    [STAThread]
    static void Main()
    {
        Application.Run(new Form1());
    }

    public Form1()
    {
        this.components = new Container();
        this.contextMenu1 = new ContextMenu();
        this.menuItem1 = new MenuItem();

        this.contextMenu1.MenuItems.AddRange(
                    new MenuItem[] {this.menuItem1});

        this.menuItem1.Index = 0;
        this.menuItem1.Text = "E&xit";
        this.menuItem1.Click += new EventHandler(this.menuItem1_Click);

        this.ClientSize = new Size(292, 266);
        this.Text = "Notify Icon Example";

        this.notifyIcon1 = new NotifyIcon(this.components);

        notifyIcon1.Icon = new Icon("appicon.ico");

        notifyIcon1.ContextMenu = this.contextMenu1;

        notifyIcon1.Text = "Form1 (NotifyIcon example)";
        notifyIcon1.Visible = true;

        notifyIcon1.DoubleClick += new EventHandler(this.notifyIcon1_DoubleClick);

    }

    protected override void Dispose( bool disposing )
    {
        if( disposing )
            if (components != null)
                components.Dispose();           

        base.Dispose( disposing );
    }

    private void notifyIcon1_DoubleClick(object Sender, EventArgs e)
    {

        if (this.WindowState == FormWindowState.Minimized)
            this.WindowState = FormWindowState.Normal;

        this.Activate();
    }

    private void menuItem1_Click(object Sender, EventArgs e) {
        this.Close();
    }
}
}