The problem is the version of SQL Server/ SQL Express 2005 that you are running, it seems like it isn't fully up to date. I have a couple of quick questions for you.
1) What version of SQL Express/Sql Server are you running? June CTP? Final release?
2) If it is the full one, did you ever install the beta beforehand?
It seems like you have some beta "bits" left over. You'll need to uninstall and install/reinstall the latest one. The problem is discussed in this thread:
and also Dave Sussman gives a useful URL http://blogs.msdn.com/astebner/archi...30/413764.aspx
in this article for tool to help with uninstallation.