Thats a new one.
Also that error links to this place as #1 lol.
My suggestion is to clean out your temp directory using either diskscleanup or a tool like ccleaner and try again, im on win 7 myself, it shouldn't need compatability mode either, games like city of heroes and bad company 2 seem to share this problem so i doubt the faults with the program specifically.
If that doesn't work you may want to try some other .net framework apps and see if they run smooth, if not you will want to reinstall your frameworks.