A search on the net showed a page where this error comes up when the performance counters are corrupt. I opened the Performance Monitors (perfmon from run) and it didn't start up with the 3 basic counters: pages/sec, % processor time, Avg. disc Queue length. When I tried to add new counters they all came up as a bunch of numbers. See below.

After verifying this was the problem I fixed the problem using the command: c:\windows\system32\lodctr /R
When I reloaded the performance counters, everything worked fine. Here is the article from Microsoft.
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