Hi rheostaticsfan,
The problem is most likely due to SP1 for .NET2 not being installed. You can check to see what version you have installed by looking in the Add/Remove programs control panel applet. It will say SP1 at the end of the .NET 2 install if its installed.
I'm currently working on v0.13 and this will require .NET 3.5 as I've moved to C#2008 as my development platform.
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