setting up SFML with visual studio 2008

I've followed this tutorial http://www.sfml-dev.org/tutorials/1.6/start-vc.php linking to the lib and include files in VC++ directories, which I think worked because I can #include <SFML/System.hpp> without any errors, but when I add sfml-system.lib to the additional dependancies I get an error

cannot open file 'sfml-system.lib'

the files are definitely on my computer, but it's not finding them for some reason. Any ideas?

Thanks x
Now I'm getting an error when I try to run the program, regardless of whether I'm using any sfml types.

"The application failed to initialize properly (0xc0150002). Click OK to terminate the application."

Did you make sure to move the libs to the correct spot? That's the only thing I can think of.
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