How do you fix error 0x8007000b in Windows Live Photo Gallery?

When you start Windows Photo Gallery (formerly Windows Live Photo Gallery, now part of Microsoft Essentials 2012), you may receive the following errors, and the application will close:

Windows Live Photo Gallery encountered an error and can't start. Error Code: 0x80070043

If you have moved your My Photos/My Videos folder to another location, it seems Windows Photo Gallery gets confused.

Try restoring the default libraries as described here:

http://answers.microsoft.com/en-us/windows/forum/windows_7-windows_programs/documentslibrary-ms-is-no-longer-working/0845e8c3-4097-47e8-887a-ae875aa7c4b6

1. In Windows Explorer, go to Libraries and delete Pictures and Videos (you may also have to delete Documents and Music).
2. Right-click Libraries in the navigation pane, then select Restore Default Libaries from the context menu.