We recently published a new KB article you might be interested in. This one covers the issue recently mentioned on the blog at http://blogs.technet.com/softgrid/archive/2007/09/19/error-53256-sequencing-adobe-cs3.aspx and in the SoftGrid forums at http://forums.microsoft.com/TechNet/ShowPost.aspx?PostID=2161712&SiteID=17.
http://support.microsoft.com/?kbid=945621 Error message when you try to sequence a program in Microsoft SoftGrid: "SystemGuard download failed (error code 53256)" 12/5/2007 SoftGrid for Windows Desktop EN-US
J.C. Hornbeck | Manageability Knowledge Engineer
I think my solution is far more elegant - create a .manifest file that specifies UTF-8. No hacking of the original applications files required. So far this has worked on all of the Adobe CS3 apps. e.g. Photoshop: http://blog.stealthpuppy.com/virtualisation/sequencing-adobe-photoshop-cs3
hmm, maybe I should read the KB again. ;)
I've not had to remove the manifest from the original DLL file and the external .manifest has worked each time.