BuildDSM and BuildOS are not the same. BuildDSM doesn't care what other directories you have in OEM or SYS.
Yes, you can run BuildDSM on a different machine and bring the result to another.
BuildDSM will run happily with any or all of the .Net flavors.
BuildDSM requires "mfc80ENU.dll" and "mfc80u.dll". These are the foundation class libraries for unicode character sets. Failure to have these .dlls is the most common reason for getting the "application not configured correctly" error.
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