Hello, I hope someone can help diagnose a mysterious problem: my application fails to start ONLY when Log Monitor is active.

SYSTEM SPECS:
Clean VMware Workstation image of Windows XP SP3 (32bit) + all security updates + DirectX 9.0c March 2009 Redistributable,

STEPS TO REPRODUCE:
(1) I run Setup Capture from a network drive, and install the .NET 2.0 Redistributable:
http://www.microsoft.com/downloads/details.aspx?FamilyID=0856EACB-4362-4B0D-8EDD-AAB15C5E04F5

(2) I install MeGUI from:
http://sourceforge.net/project/downloading.php?group_id=156112&filename=megui-0_3_1_1028.exe&a=77905076

(3) I run MeGUI once, to confirm it's working.

(4) I complete the Setup Capture, and build the binaries on the host OS.

(5) I revert my VMware guest OS image back to the clean snapshot, copy the MeGUI binaries over, and run MeGUI. Program starts successfully.

(6) I start Log Monitor, then attempt to start MeGUI. Program crashes, and an Event Log is written:
".NET Runtime version 2.0.50727.3082 - Fatal Execution Engine Error (7A0979C6) (80131506)"

I should say also that I've also tried .NET 3.5 SP1 instead of .NET 2.0, with the same results.

The attachment system is broken, so I had to upload my Package.ini and trace files to a third-party host:
http://www.megaupload.com/?d=O0DIUI2T

Corrected link to files