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We have AutoCad Civil 3D 2010 installed on a laptop, and this error message appears only for some users once logged in. I did the whole Micrsoft .net uninstall, reinstall thing, but it did not correct the error. Is there something else that might cause this? Especially for different users on the same computer?
There seems to be a regular problem with C3D 2010 where user profiles get corrupted by something. If C3D is working fine for other users on the same machine, then you may have encountered that issue.
Search the forum for "initiate secondary installer" to find the instructions to reset the user profile to its default state.