Windows 7 Program Compatibility Wizard Troubleshooter Error code 0x80131700

I recently upgraded my vista home premium to windows 7 and after upgradation I was continously getting an error code that was getting generated because of the problem with the Program Compatibility Wizard Troubleshooter:

Package ID: PCWDiagnostic
Path: C:\Windows\diagnostics\system\PCW
Error code: 0x80131700
Source: Engine
User: XXXX/xxxxx
Context: Restricted

Can anyone help me out. Thank you

Have you installed microsoft .net framework 1.1 cause that might be a problem for you but in any case you can find solutions for it on the following MS KB article: http://support.microsoft.com/kb/922377

1) Goto: C:\Windows\diagnostics\system\PCW
2) Double click on DiagPackage which is a Troubleshooting Pack type, that will open the Program Compatibility Wizard.
3) Click next, it will start searching for all the installed applications on your system, select one from them or if it's not mentioned then click Not Listed then it will give you the browse option to find the application. Select your application and click next.
4) Click on Try recommended settings.
5) Click on Start the Program button, this will start your application, and click next.
6) You may face the UAC prompt asking to allow the application (Hoping your application is from safe source), allow the same.
7) If the application starts running, then click Yes, save these settings for this program otherwise try other options.

More information here.