Mar 18, 2008 11:06 AM|waheed1|LINK
I had the same issue ... finally got to the bottom of it:
Within my environment path variable I had MS office path defined as follows:
C:\Program Files\Microsoft Office\Office10
This contains an old version of fpcutl.dll, which VWD ends up using.
To solve the problem add C:\Program Files\Microsoft Web Designer Tools\VWD to the start of your path variable.