Problems with installing an application

I have this really annoying problem with my computer while trying to install and run an application. Every time I try to install and use it, it gives me:

Application has generated an exception that could not be handled.
Process id=Ox11a8 (4520), Thread id=Ox1540(5440).
Click OK to terminate the application.
Click CANCEL to debug the application

I click CANCEL to debug the application and I get this:

Registered JIT debugger is not available. An attempt to launch a JIT debugger with the following command resulted in an error cod of 0x2 (2). Please check computer settings.

cordbg.exe !a 0x9cc

Click on Retry to have the process wait while attaching a debugger manually.
Click on Cancel to abort the JIT debug request.

Nothing happens when I click either one and I don't know how to attach a debugger manually.

I uninstalled NET Framework 1.1 and reinstalled and nothing seems to help. Im thinking that my debugger isnt working, and this is really bothering me, because I had run this same application eairler with no problems and all of a sudden it wont work. Does anyone have any sugestions. Thank you.