UPDATE: Just wanted to point out that it's likely that this issue was after installing .NET Framework 2.0 Service Pack 1 (SP1)
I just updated an entry in the technet forums regarding a previous
issue I've encountered before. I was able to solve my issue by
reinstalling SQL Server (which is not a very brilliant solution) but
since I only have the issue in my development machine, reinstalling was
an option and worked for me.