I get this error when i install fresh .net framework 1.1 on my laptop. One surprise problem that i had faced is Exception coming from my System.drawing.dll. Exception is "An unhandled exception of type 'System.ArithmeticException' occurred in system.windows.forms.dll
Additional information: Overflow or underflow in the arithmetic operation." After a lot of hard search and reading lot of blogs and forums i didnt find any good solution of this unusual problem. Even MS Help and support the same problem has been reported for CLR 1.0 not for .net 1.1.
RESOLUTION
Simplly repair yours .net 1.1 framework from control panel.