How to resolve conflicts between Visual Studio 2010 and Visual Studio 2012

I have a Windows application written in Visual Studio 2010. It connects to a web service and does other database calls as well.

When I installed Visual Studio 2012 the above mentioned app doesn't work anymore. I thought that something was broken or that there were maybe conflicts between 2010 and 2012. So just to be sure I uninstalled all my Visual Studios and reinstalled Visual Studio 2010. I tried to run the app again and it worked 100%. I then reinstalled Visual Studio 2012 and the app doesn't run. It comes up with the following error:

A fatal error has occurred and debugging needs to be terminated. For more details, please the Microsoft Help and Support web site. HRESULT=0x8007000e. ErrorCode=0x0.

Why would I be getting this error? How do I resolve this?

My app can't be out of memory as I have about 4GB and that is sufficient when it runs without Visual Studio 2012 installed.

.NET Framework 4.5 is an “in place upgrade” to .NET Framework 4.0. Some files were probably upgraded that’s may be the reason. see the link for details vs2010 v/s vs2012