See
http://support.microsoft.com/default.aspx?scid=kb;en-us;915430&sd=rss&spid=8291
for more detail.
The other problem reported by Isaac
http://blogs.msdn.com/junfeng/archive/2005/12/13/503059.aspx#546000
[b] If you add the section <runtime> <developmentMode developerInstallation="true"/> </runtime> to machine.config but you don't define any DEVPATH environment variable, your EXE will crash.
is not fixed by this QFE. It is a different problem and may be fixed by a separate QFE.