In case you have not seen this but HotFix Package 2 Hit support downloads this week rapper up in kb959834.
The core summary of the KB details the following updates;
This article describes a hotfix package for December 2008 that contains the latest hotfixes for Microsoft Application Virtualization 4.5.
Note We recommend that you test hotfixes before you deploy them in a production environment. Because the builds are cumulative, each new fix release contains all the hotfixes and all the security fixes that were included with the previous update package. We recommend that you consider applying the most recent fix release that contains the hotfix that you need. (JZ : This is important that you do test the hotfix! I cannot describe how many customers I have gone out for to assist where they have not tested appropriately)
The following issues are fixed in the hotfix package:
File Not Found
The application failed to initialize properly (0xc000007b)
NOTE!!! Please Please Please only apply the update if you are experience the above conditions. This hotfix is intended to correct only the problem that is described in http://support.microsoft.com/?kbid=959834 . Apply this hotfix only to systems that are experiencing the problem described in http://support.microsoft.com/?kbid=959834. This hotfix might receive additional testing. Therefore, if you are not severely affected by this problem, we recommend that you wait for the next software update that contains this hotfix.