I've been wrestling with fixing this problem all morning and the new 1.6.2 seemed to fix it BUT ...

THE TEA-TIMER TRAY ICON ISN"T THERE NOW, so I wasn't sure it was fixed and kept futzing around with it for longer than was probably needed (before I made it to the end of the thread here and saw that mentioned).

If I uncheck the Resident boxes, close and reopen the program and recheck the boxes, THEN the systray icon reappears but disappears again after a reboot. Checking the log and Processes in SM shows it's working but the missing icon might cause other people to be confused as I was.

On a related note, I started getting the original error after I installed MS Zune software last week when I bought a Zune. I'm pretty sure I had the 1.6.2.23 update installed prior to that and I only started getting the error messages in the last couple of days.

Thanks for the fix, btw - you might look into the disappearing tray icon though.