gpupdate error with event id userenv 1041

I work in a Windows client server environment and I am getting the below error event when I am going for the gpupdate:

Event Type: Error
Event Source: Userenv
Event Category: None
Event ID: 1041
Date: 05/06/2009
Time: 6:36:52 PM
User: NT AUTHORITY\SYSTEM
Computer: MACHINE-55
Description: Windows cannot query DllName registry entry for {CF7639F3-ABA2-41DB-97F2-81E2C5DBFC5D} and it will not be loaded. This is most likely caused by a faulty registration.

For more information, see Help and Support Center at http://go.microsoft.com/fwlink/events.asp.

I was using Internet Explorer 8 but I have uninstalled it and I am login as domain administrator. Thanks for any information.

Can you check here for instance http://support.microsoft.com/kb/957700/ and see if it helps. In either case, is this the only domain controller you have and its running DNS? Have you checked whether there are any other errors in the event log? Also check if the DNS service is running or not? You can also check with the nslookup.