I think there might be an issue with .NET 2.0 SP2 that causes my normal fix of “click the reinstall button on .NET 2.0″ to fix this issue. i recently ran into this issue again and it didnt work. What did work is the commands below. Bascially it is uninstalling and reinstalling via regiis.

C:\WINDOWS\Microsoft.NET\Framework\v2.0.50727>aspnet_regiis -u   (uninstall)

C:\WINDOWS\Microsoft.NET\Framework\v2.0.50727>aspnet_regiis -i   (reinstall)