I found that mt.exe fails to correctly create and embed manifest files into executables when run inside a VCPROJ.

For example the same executable load well on Windows 7 but failed to load on Windows XP. The manifest was embedded and correct.

After I spend lots of hours searching for possible reasons and solution I modified the project settings to generate the manifest outside the exe file. Now it works on both systems.

Here are the examples for debug builds.

With embed disabled:

<?xml version="1.0" encoding="UTF-8" standalone="yes"?>
<assembly xmlns="urn:schemas-microsoft-com:asm.v1" manifestVersion="1.0">
  <trustInfo xmlns="urn:schemas-microsoft-com:asm.v3">
    <security>
      <requestedPrivileges>
        <requestedExecutionLevel level="asInvoker" uiAccess="false"></requestedExecutionLevel>
      </requestedPrivileges>
    </security>
  </trustInfo>
  <dependency>
    <dependentAssembly>
      <assemblyIdentity type="win32" name="Microsoft.VC90.DebugCRT" version="9.0.21022.8" processorArchitecture="x86"     publicKeyToken="1fc8b3b9a1e18e3b"></assemblyIdentity>
    </dependentAssembly>
  </dependency>
  <dependency>
    <dependentAssembly>
      <assemblyIdentity type="win32" name="Microsoft.VC90.DebugMFC" version="9.0.21022.8" processorArchitecture="x86" publicKeyToken="1fc8b3b9a1e18e3b"></assemblyIdentity>
    </dependentAssembly>
  </dependency>
</assembly>

This is with embed enabled:

<?xml version="1.0" encoding="UTF-8" standalone="yes" ?> 
<assembly xmlns="urn:schemas-microsoft-com:asm.v1" manifestVersion="1.0">
<trustInfo xmlns="urn:schemas-microsoft-com:asm.v3">
<security>
<requestedPrivileges>
<requestedExecutionLevel level="asInvoker" uiAccess="false" /> 
</requestedPrivileges>
</security>
</trustInfo>
<dependency>
<dependentAssembly>
<assemblyIdentity type="win32" name="Microsoft.VC90.DebugCRT" version="9.0.21022.8" processorArchitecture="x86" publicKeyToken="1fc8b3b9a1e18e3b" /> 
</dependentAssembly>
</dependency>
<dependency>
<dependentAssembly>
<assemblyIdentity type="win32" name="Microsoft.VC90.DebugMFC" version="9.0.21022.8" processorArchitecture="x86" publicKeyToken="1fc8b3b9a1e18e3b" /> 
</dependentAssembly>
</dependency>
<dependency>
<dependentAssembly>
<assemblyIdentity type="win32" name="Microsoft.Windows.Common-Controls" version="6.0.0.0" processorArchitecture="x86" publicKeyToken="6595b64144ccf1df" language="*" /> 
</dependentAssembly>
</dependency>
</assembly>

If you compare them the second one adds common controls (I don't know from where) and also it is a small difference with the syntax of requestedExecutionLevel tag.