As this can be a complex situation to troubleshoot effectively, I might suggest that you call our support line and speak with a representative. Once we have been able to gather information regarding the issue that you are experiencing, we will be able to investigate further if needs be. Please ensure that you do meet the system requirements as well.

Here are the current requirements:

Currently, I have sent a message to the team to have this issue resolved. Once resolved, I will update this thread.

Thank you,

Brian H - MSFT

If you are still experiencing this error, you can try renaming the 2.0 folder.

The folder is loceted in the Apps directory here:
c:\Users\%username%\AppData\Local\Apps\
c:\Documents and Settings\%username%\AppData\Local\Apps\

Rename the 2.0 folder to 2.0__OLD (suggestion only), then restart Ace and it will rebuild the 2.0 folder with the correct files. Once I had restarted Ace, I was able to successfully able to utilize the desktop tool once agin.

Please let me know the outcome.

Thank you,

Brian H - MSFT

For the record here is the exact location of my folder:
C:\Documents and Settings\George\Local Settings\Apps\2.0