UPDATE: Just wanted to point out that it’s likely that this issue was after installing .NET Framework 2.0 Service Pack 1 (SP1)

I just updated an entry in the technet forums regarding a previous issue I’ve encountered before. I was able to solve my issue by reinstalling SQL Server (which is not a very brilliant solution) but since I only have the issue in my development machine, reinstalling was an option and worked for me.

http://forums.microsoft.com/TechNet/ShowPost.aspx?PostID=2828943&SiteID=17&mode=1