If you start getting this stunning error on startup, you likely:
The solution is to search your hard drive for all instances of PSAPI.dll and rename them to something like PSAPI.old.
UPDATE: I've received one report where someone had trouble with this tip, and he suggested leaving the PSAPI.dll in c:\windows\system32 alone. I didn't, but you should be aware and possibly try first with that one DLL left alone.
This problem was debugged using ProcessExplorer to ask folks (other processes) WHERE their PSAPI came from...
Crisis averted, at least for me.
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