Execution permission cannot be acquired for Outlook 2003 addin

I am developing a simple Outlook 2003 add-in using VSTO 2008. Everything works fine on development environment. But when I try to install the addin it gives following load error. I think there is some security related issue. Please help me in resolving this issue.

Could not load file or assembly 'OutlookAddIn, Version=1.0.0.0, Culture=neutral, PublicKeyToken=null' or one of its dependencies. Failed to grant permission to execute. (Exception from HRESULT: 0x80131418)


************** Exception Text **************
System.IO.FileLoadException: Could not load file or assembly 'OutlookAddIn, Version=1.0.0.0, Culture=neutral, PublicKeyToken=null' or one of its dependencies. Failed to grant permission to execute. (Exception from HRESULT: 0x80131418)
File name: 'OutlookAddIn, Version=1.0.0.0, Culture=neutral, PublicKeyToken=null' ---> System.Security.Policy.PolicyException: Execution permission cannot be acquired.
   at System.Security.SecurityManager.ResolvePolicy(Evidence evidence, PermissionSet reqdPset, PermissionSet optPset, PermissionSet denyPset, PermissionSet& denied, Boolean checkExecutionPermission)
   at System.Security.SecurityManager.ResolvePolicy(Evidence evidence, PermissionSet reqdPset, PermissionSet optPset, PermissionSet denyPset, PermissionSet& denied, Int32& securitySpecialFlags, Boolean checkExecutionPermission)
   at Microsoft.VisualStudio.Tools.Applications.Runtime.AppDomainManagerInternal.HandleOnlineOffline(Exception e, String basePath, String filePath)
   at Microsoft.VisualStudio.Tools.Applications.Runtime.AppDomainManagerInternal.LoadStartupAssembly(EntryPoint entryPoint, Dependency dependency, Dictionary`2 assembliesHash)
   at Microsoft.VisualStudio.Tools.Applications.Runtime.AppDomainManagerInternal.ConfigureAppDomain()
   at Microsoft.VisualStudio.Tools.Applications.Runtime.AppDomainManagerInternal.LoadAssembliesAndConfigureAppDomain(IHostServiceProvider serviceProvider)
   at Microsoft.VisualStudio.Tools.Applications.Runtime.AppDomainManagerInternal.LoadEntryPointsHelper(IHostServiceProvider serviceProvider)




************** Loaded Assemblies **************
mscorlib
    Assembly Version: 2.0.0.0
    Win32 Version: 2.0.50727.3603 (GDR.050727-3600)
    CodeBase: file:///C:/WINDOWS/Microsoft.NET/Framework/v2.0.50727/mscorlib.dll
----------------------------------------
Microsoft.VisualStudio.Tools.Applications.Runtime
    Assembly Version: 8.0.0.0
    Win32 Version: 8.0.50727.940
    CodeBase: file:///C:/WINDOWS/assembly/GAC_MSIL/Microsoft.VisualStudio.Tools.Applications.Runtime/8.0.0.0__b03f5f7f11d50a3a/Microsoft.VisualStudio.Tools.Applications.Runtime.dll
----------------------------------------
Microsoft.Office.Tools.Common
    Assembly Version: 8.0.0.0
    Win32 Version: 8.0.50727.940
    CodeBase: file:///C:/WINDOWS/assembly/GAC_MSIL/Microsoft.Office.Tools.Common/8.0.0.0__b03f5f7f11d50a3a/Microsoft.Office.Tools.Common.dll
----------------------------------------
System
    Assembly Version: 2.0.0.0
    Win32 Version: 2.0.50727.3053 (netfxsp.050727-3000)
    CodeBase: file:///C:/WINDOWS/assembly/GAC_MSIL/System/2.0.0.0__b77a5c561934e089/System.dll
----------------------------------------
System.Windows.Forms
    Assembly Version: 2.0.0.0
    Win32 Version: 2.0.50727.3053 (netfxsp.050727-3000)
    CodeBase: file:///C:/WINDOWS/assembly/GAC_MSIL/System.Windows.Forms/2.0.0.0__b77a5c561934e089/System.Windows.Forms.dll
----------------------------------------