I am posting for the first time having solved a problem others may suffer. After a re-install of MS Visual Basic.net, I started to get the following message as soon as I started a new project:

[Resource lookup failed - infinite recursion detected. Resource name: Arg_NullReferenceException]

I have found the solution:

1) unistall the Microsoft.net programs using the Add or Remove Programs function of the control panel. (Specifically remove versions 1.0, 1.1 and 2.0)

2) Re-boot into safe mode and find the C:\Windows\Microsoft.NET\Framework and proceed to delete the Framework Folder and contents.

3) re-install the Microsoft Windows Compnent Update Disk

Problem solved.

You may also want to try the following last step. - I have not tried it myself yet:

4) Download Windows updates