I would try repairing .NET, sadly it's not easy to do in Windows 7
http://blogs.msdn.com/b/astebner/archiv ... vista.aspx
It says Vista, but it's the same process.
Repairing .NET Framework 2.0/3.0 files on Windows Vista
You can use the following steps to repair the files that are a part of the .NET Framework 2.0 and 3.0 on Windows Vista and Windows Server 2008:
1. Click on the Start menu, choose All Programs, then Accessories, then right-click on the Command Prompt item and select Run as administrator
2. Click Continue to authorize opening a command prompt with administrative privileges
3. Run this command in the cmd prompt: sfc /scannow
4. The cmd prompt should list text stating "Beginning system scan. This process will take some time."
5. Wait for the scan to complete (this can take several minutes so be patient). This command will scan all protected system files and replace incorrect versions with correct Microsoft versions
6. When the scan completes, the SFC tool will indicate whether or not it found any problems and whether or not it was able to fix them