I publish this error as its cause was really weird:
I was getting an error when trying to start any Management Console related program (mmc.exe based admin tool), like Certificates, Event Viewer, etc.
The error was:
“The application has failed to start because its side-by-side configuration is incorrect.
It turns out that adding a Loopback adapter in Windows 7 is a little bit tricky, because we have no “Add Hardware” menu icon within Control Panel, anymore. Everything is supposed to be detected by Windows 7. (At least in current Windows 7 RC1).
Sometimes you’d want to install Windows from a bootable DVD but you just have all the Windows files… I mean, in my case I’ve got Windows 7 build 7048 (beta drop, but it does not matter), but I currently don’t have its related ISO image.
[Update 15 August 2009 – Tested with Windows 7 RTM final version]
The most important thing to keep in mind is that we currently (prior to Windows 7) cannot natively boot from any kind of .VHD.
Actually, I have just managed to boot from a Windows 7 installed on a new .VHD,
Windows 7 has a great and new capability which consists on the ability to attach a VHD (Virtual PC Hard Disk image) as a native drive. This way you could see a VHD from Windows 7 like if it were a regular hard drive.