I had exactly the same error on one (out of hounderts) client(s). The solution was very simple. I installed all available Windows updates (including the service pack ones for .NET 4.0) and installed the latest vcredist.exe from Microsofts Knowledgbase: http://support.microsoft.com/kb/259403
To be honest, the vcredist installation said it failed at the end, so I guess the .NET 4.0 updates did the job.
Hope this helps
Jann