.Net Framework Initialization Error

[soprenah]

The fatal error I get I've not seen reported in the stickies or faq's:

"To run this application, you first must install on of the following versions of the .NET Framework:
v2.0.50215
Contact your application publisher for instructions about obtaining the appropriate version of the .NET Framework."

The version of .NET 2.0 that I have installed is the one from current Windows Update. (XP Pro)

I get this same error if I unstall 2.0 and intall 1.1

XP Pro is fully patched and updated.