The only reason .NET 2.0 framework would help is if you are getting this error on the Updater. Neither the client, nor server are written in .NET and therefore it surprises me that it helped at all.
If you are still having problems,
- what version of windows are you on?
-- 32bit or 64bit?
- is this error on the server, client, or updater?
- does it happen every time, over time, or rarely?
-- if not every time, what were you doing when it happened?
You've registered all dependencies, but could you tell me did you manually register them?