I am running a console application in MS Visual Studio 2010 in Windows 7 and I get the following error message when trying to create a new Excel application using a standard C# command:

The full code is as follows and the error occurs when executing new Excel.Application() command:
using System;
using System.Collections.Generic;
using System.Linq;
using System.Text;
using Excel = Microsoft.Office.Interop.Excel;
namespace ConsoleApplication3
{
class Program
{
static void Main(string[] args)
{
// Open a Excel spreadsheet
Excel.Application excel = new Excel.Application();
}
}
}
I have made sure the appropriate .NET reference has been added to the project:

I am a little puzzled as to what else I should be doing next. I have seen one or two other posts that mention similar looking error messages, but I am still none the wiser on how to proceed.
I have the trial version and "Starter" version of Microsoft Office 2010 installed only, so would this make any difference? Do I need to purchase the full-on Office before I can attempt anything like this?