>After I build my setup.exe file in InstallShield and launch the exe file, it's install the program and desktop icons with no problems. But when I click on the icon to launch the program I am getting this error, "Program Error: API Libaray is not found. What can I do to fix this error\problem.

It could be any FLL file used by your application. Most likely Foxtools.fll. You've to distribute it/them with your application.