.Net Runtime Optimization Service failed to compile

I am getting this error on a new Sql 2005 server I am building.  I am not a SQL person, but I'm installing it none the less.  I had installed 2 database instances and SP2 on both, rebooted and no errors (execpt for Schannel, but I have another thread for that).  Only after I installed the Workstation Compnents and reapplied SP2 to them did the following did the errors appear.  This is my log of the install:

Install SQL Workstation components
                     Run sql setup
      Select Workstation components, books online and development tools.
      Default install path c:\program files\microsoft sql server
      Rerun SP2 to upgrade client components
      Reboot
      Check Logs
      Getting error after installing Workstation components and Rerunning SP2
      
                     Event Type:      Error
.      Event Source:      .NET Runtime Optimization Service
      Event Category:      None
      Event ID:      1101
                     Date:            10/1/2008
      Time:            12:10:56 PM
      User:            N/A
      Computer:      SAMEDAY2
      Description:
      .NET Runtime Optimization Service (clr_optimization_v2.0.50727_32) - Failed to compile:              Microsoft.ReportingServices.QueryDesigners, Version=9.0.242.0, Culture=neutral, PublicKeyToken=89845dcd8080cc91 . Error code = 0x80070002
      
.      
.      For more information, see Help and Support Center at http://go.microsoft.com/fwlink/events.asp.

Then I tried to reinstall .net 2.0:
      In add/remove programs
      Tried to remove .net 2, said could not due to would affect other programs
      Clicked Change instead. Several event viewer info entries
      Also did Change on Visual studio.
      Reboot
      Still errors, but seems not as often.

Here's a post I found:

Suggestion from http://blog.mechanised.com/2008/09/event-log-error-fix-for-rs-errors-after.html
To Fix, drag
C:\Program Files (x86)\Microsoft Visual Studio 8\Common7\IDE\PrivateAssemblies\Microsoft.ReportingServices.Design.dll
to
C:\WINDOWS\assembly

To install the offending library to the GAC.
Double check all is fine:

C:\WINDOWS\microsoft.net\Framework\v2.0.50727\ngen executeQueueditems

Cannot drag to folder is read only
Executed executeQueueditems without copy dll to see what it did.  A ton of entries scrolled by for several minutes.  Lot of file not founds.

Reboot 2:42 to make sure nothing else messed up

No more errors, but .net Runtime Optimization service is now set to Manual and not started, previously it was started.  Started it manually, but it stops after a few seconds.

I did not finish trying the above suggestion since the instructions on installing to the GAC are missing and I don't know what that is.

I have not installed any ot the post SP2 cumulative updates as I don't want to mess anything else up and I'm not sure which one to apply.