Hi,
Thanks for the input, It appears that you have an issue with the installation of the Microsoft .NET Framework,
In order to try and fix this please go to start-->Settings-->Control Panel-->Add or remove Programs
Now, Select the 'Microsoft .NET framework 2 item and click on change(this should take a minute or two).
If after doing so the problem persists, you will have to download and install the Microsoft .NET Framework again from the following location:http://www.microsoft.com/downloads/details.aspx?FamilyID=0856EACB-4362-4B0D-8EDD-AAB15C5E04F5&displaylang=en
Asaf.