I had a strange error after updating/rebooting a server yesterday: Management Studio popped up with the error above when I tried connecting to a server, and several other messages when trying to run queries.
After some unhelpful hints from other forums, I found the real solution/problem hidden in a post: My TEMP/TMP folder(s) didn’t exist.
For some reason my variables were set to:
After the update, this “1″ folder didn’t exist anymore. I could fixed this by editing the environment variables (right click Computer, Properties, Advanced, Environment Variables) and rebooting (since I didn’t know how many applications were using the wrong temporary folders).