According to this,

Above .Net Runtime Error is simply a permissions issue.

1. Go to “Administrative tools” => Services.
2. Check to see which account is running “Enterprise Single Sign-On Service”.

This account needs to have access to the following Registry Key:

HKEY_LOCAL_MACHINE\SOFTWARE\Microsoft\.NETFramework\policy\AppPatch

Assign “Full Control” to the account and the error will go away.

But in my case, the symptom doesn’t go away.

Domain, Win2003, VS2005, SQL2005.

Does anybody have any experience with this?

There are a lot of talks here but seems it’s not solved yet.