The regular compiler creates .Net 1.0 applications.
It also creates a config file that causes the .Net 1.0 application to run against the .Net 2.0 framework if that exist. You could try to delete the config file.
I now the problem for working in NET 1: you have to delete line
<supportedRuntime version="v2.0.50727"/>
in the 'Dbasic.exe.config'.
Be aware of the fact that if you used the early SerialDevice.dll 28K model, your serial app. may not work with the SerialDevice.dll 16K model, this wass the case to me...