That's one of Windows more annoying errors - I've faced it here at work recently (I write software for a living). What's potentially missing is an up-to-date version of the Microsoft Visual C++/Visual .NET Redistributable packages.
Run Windows Update, ensure you have XP Service Pack 3 and all the security updates that have been released since then. Grab the latest .NET and Visual C++ Redistributable updates as well (Windows Update should have them as optional extra downloads).
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