The problem you're having seems to be a known issue with WPF and .NET 3.5 SP1 on some systems and there is a hotfix available from Microsoft (link
). I also found another thread
where the user said that when they changed their desktop resolution the app started working again.
Also please note that if you are using the latest version of WIM that it requires Team Explorer 2010 as a prerequisite, not TE 2008.
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