I have seen that error message before, and I had to uninstall .NET 2.0 and then install the application to get it to work. Not saying that it will work here, but you might give it a try.
Is there any update on this problem. We are rollingout 75 servers that are x64 and would love to have the ability to send event log data to the log server.
Yes- problem solved. The update is here -