Thanks to another post and more research, I finally found out what's wrong; you must put the App.config file in the project directory itself (I had had it in a subdirectory). Then it gets automatically copied to the build target directory (where the exe resides) and gets auto-renamed to 'programname.exe.config'. This renaming is part of the build process.
Thanks for the help, support crew. This is an excellent product (even the free lib!).