dfsvc.exe has encountered a problem and needs to close

This error can happen when any number of programs are installed for example; .Net or Clickonce and upon opening that program you get this error.

You must log in as administrator and then delete the UsrClass.dat file:

C:\Documents and Settings\%userprofile%\Local Settings\Application Data\Microsoft\Windows\UsrClass.dat

If the above does not work, you can try the below.

Go in regedit and browse to the below location and give FULL permissions.

HKEY_CURRENT_USER\Software\Classes\Software\Microsoft\Windows\CurrentVersion\Deployment