Sorry, the ordering of the supportedRuntime is reversed. It should list 4.0 first so if your machine has .NET 4.0 installed, it will load; otherwise, 2.0 is used. Also, you can omit the build number (especially .NET 4.0 is still not final).
The following .config file will work on a machine with .NET 2.0 through 3.5 +/- .NET 4.0.
<?xml version="1.0" encoding="utf-8"?>
<configuration>
<startup useLegacyV2RuntimeActivationPolicy="true">
<supportedRuntime version="v4.0" />
<supportedRuntime version="v2.0" />
</startup>
</configuration>