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Act! 9/2007 fails to start - incorrect configuration

We have a copy of Act! Premium for Web 9 (2007) running on our Windows 2003 server that now fails to open. The error message is:

"C:\Program Files\ACT\Act for Web\ActSage.exe
This application has failed to start because the application configuration is incorrect. Reinstalling the application may fix the problem."

The problem has started since installing the Act! SQL Server 2005 Update.

From searching online I believe that this may result from corruption or misconfiguration of manifest and config files in applications written in .net (which this is).

Does anyone have a fix for this or is reinstallation the only solution?

Many thanks
Graham
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