The problem appears to originate when .Net 2.0 components cannot find various support files. We were able to reproduce it by installing Windows Defender Beta 2.0 and once Windows Defender was uninstalled our program then functioned fine.
It cannot find the MSVCR80.dll file either because the Microsoft .Net 2.0 does not install this file in the Windows\System32 directory. This apparently has caused major problems with hundreds of programs as we found plenty of results in the web search on it.
If removing windows defender doesnt work or you don't have it I would manually remove the .net framework and any updates you have for it and then try and reinstall.
Windows defender is the main problem that is causing this. I WOULD NOT add anything to you windows32 files or windows directly unless you know what it is. (as it will cause problems in the future).
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