Error loading type library/DLL. (Exception from HRESULT: 0x80029C4A (TYPE_E_CANTLOADLIBRARY))

I have installed VS2008 (SP1) on Windows 7 (64bit) machine.

When I run the VS IDE in "Run as administrator" mode and create a new Winform application or open the design view of a Form in an already existing application, I get following error message:

Error loading type library/DLL. (Exception from HRESULT: 0x80029C4A (TYPE_E_CANTLOADLIBRARY)) 

The stack trace for this error is given below:

at EnvDTE.Project.get_Properties()
at Microsoft.VisualStudio.Design.VSTypeResolutionService.get_References()
at Microsoft.VisualStudio.Design.VSTypeResolutionService.EnsurePopulated(Boolean fPopulateProject)
at Microsoft.VisualStudio.Design.VSTypeResolutionService.SearchNormalEntries(AssemblyName assemblyName, String typeName, Boolean ignoreTypeCase, Assembly& assembly, Boolean fastSearch)
at Microsoft.VisualStudio.Design.VSTypeResolutionService.SearchEntries(AssemblyName assemblyName, String typeName, Boolean ignoreCase, Assembly& assembly, ReferenceType refType)
at Microsoft.VisualStudio.Design.VSTypeResolutionService.GetType(String typeName, Boolean throwOnError, Boolean ignoreCase, ReferenceType refType)
at Microsoft.VisualStudio.Design.Serialization.CodeDom.AggregateTypeResolutionService.GetType(String name, Boolean throwOnError, Boolean ignoreCase)
at Microsoft.VisualStudio.Design.Serialization.CodeDom.AggregateTypeResolutionService.GetType(String name)
at System.ComponentModel.Design.DesignerHost.System.ComponentModel.Design.IDesignerHost.GetType(String typeName)
at System.ComponentModel.Design.Serialization.CodeDomDesignerLoader.EnsureDocument(IDesignerSerializationManager manager)
at System.ComponentModel.Design.Serialization.CodeDomDesignerLoader.PerformLoad(IDesignerSerializationManager manager)
at Microsoft.VisualStudio.Design.Serialization.CodeDom.VSCodeDomDesignerLoader.PerformLoad(IDesignerSerializationManager serializationManager)
at Microsoft.VisualStudio.Design.Serialization.CodeDom.VSCodeDomDesignerLoader.DeferredLoadHandler.Microsoft.VisualStudio.TextManager.Interop.IVsTextBufferDataEvents.OnLoadCompleted(Int32 fReload) 

However, everything works fine if I am running the IDE in normal mode (i.e not "Run as administrator")

I have seen previous questions related to this error message but most of them are irrelevant.