In the project's files there is a –app.xml file. One of the very first lines defines the namespace which is the API version for the app. 4.7 defaults to 3.1, IIRC, so somehow you've upgraded your AIR SDK to 3.4 but the destination machine is still on AIR SDK 3.1 which doesn't know about 3.4.
Either change the version back to 3.1 or upgrade the AIR SDK.
I'm a bit confused. In the FB preferences air 3.4 is listed as the version used. When I check for updated the updater reports that everything is up do date. In the Flex tab 4.6 is used. If I need to download an updated version of the air sdk is this the proper way to do it?
The release notes for Flex SDK 4.6 say that AIR 3.1 is the default. See
If you overlay a Flex SDK with a newer AIR SDK, it updates the minimum required version, so that may be what you are seeing in preferences.
To overlay a Flex SDK, don't use the link you provided, try this one: http://helpx.adobe.com/x-productkb/multi/how-overlay-air-sdk-flex-sdk.html
Also note that when you download recent AIR SDKs, make sure you download a Flex-compatible version. The default AIR SDKs are not always Flex SDKs.