I’ve been doing some work in Visual Studio 2005 and it no longer supports embedding your XML manifest file through resources. Instead you have to specify some additional manifest dependencies – because of course that’s easier?!
I can never remember how to do this and rather than duplicate the information here, I’ll link to Jim Mathies’ helpful post: Manifest Dependencies in Visual Studio 2005
It is still possible to use manifests in resources: just disable the auto-generation (e.g. by setting “Generate Manifest” to “no”). Note: I am still undecided whether I like the new way or not.