I have no help, only a similar problem. I also have .NET 2.0. I installed some Office 2007 Beta. I start my machine (Electrovaya Scribbler 3000) and I get a dialog that the C++ runtime library was asked to terminate in an unexpected manner. I can only get the dialog to close by killing it, i.e., right-clicking the icon on the menu bar at the bottom of the screen and selecting Close, then selecting the option to en the unresposibve process. That's when the dialog about having to close a program and if I want to send an error report to Microsoft about the Tablet PC Component not responding comes up. This is where I found out that it was TabTip.exe that wasn't playing nice.

My pen still moves the mouse around and I can click buttons, but the input panel doesn't work. I don't get a fake keyboard and the icon for the input panel doesn't appear.

The Even Viewer has no exception that I can relate to the problem.