I am having the same problem. I have ArcGIS 10.1 installed on my Windows 7 64-bit PC.
Here is the full error -
See the end of this message for details on invoking
just-in-time (JIT) debugging instead of this dialog box.
************** Exception Text **************
System.TypeInitializationException: The type initializer for 'ESRI.ArcGIS.Diagrammer.DiagrammerEnvironment' threw an exception. ---> System.IO.FileNotFoundException: Could not load file or assembly 'ESRI.ArcGIS.System, Version=10.0.0.0, Culture=neutral, PublicKeyToken=8fc3cc631e44ad86' or one of its dependencies. The system cannot find the file specified.
File name: 'ESRI.ArcGIS.System, Version=10.0.0.0, Culture=neutral, PublicKeyToken=8fc3cc631e44ad86'
at ESRI.ArcGIS.Diagrammer.DiagrammerEnvironment..ctor()
at ESRI.ArcGIS.Diagrammer.DiagrammerEnvironment..cctor()
WRN: Assembly binding logging is turned OFF.
To enable assembly bind failure logging, set the registry value [HKLM\Software\Microsoft\Fusion!EnableLog] (DWORD) to 1.
Note: There is some performance penalty associated with assembly bind failure logging.
To turn this feature off, remove the registry value [HKLM\Software\Microsoft\Fusion!EnableLog].
--- End of inner exception stack trace ---
at ESRI.ArcGIS.Diagrammer.DiagrammerEnvironment.get_Default()
at ESRI.ArcGIS.ArcDiagrammer.FormDiagrammer.OnLoad(EventArgs e)
at System.Windows.Forms.Form.OnCreateControl()
at System.Windows.Forms.Control.CreateControl(Boolean fIgnoreVisible)
at System.Windows.Forms.Control.CreateControl()
at System.Windows.Forms.Control.WmShowWindow(Message& m)
at System.Windows.Forms.Control.WndProc(Message& m)
at System.Windows.Forms.ScrollableControl.WndProc(Message& m)
at System.Windows.Forms.ContainerControl.WndProc(Message& m)
at System.Windows.Forms.Form.WmShowWindow(Message& m)
at System.Windows.Forms.Form.WndProc(Message& m)
at System.Windows.Forms.Control.ControlNativeWindow.OnMessage(Message& m)
at System.Windows.Forms.Control.ControlNativeWindow.WndProc(Message& m)
at System.Windows.Forms.NativeWindow.Callback(IntPtr hWnd, Int32 msg, IntPtr wparam, IntPtr lparam)
************** Loaded Assemblies **************
mscorlib
Assembly Version: 2.0.0.0
Win32 Version: 2.0.50727.5466 (Win7SP1GDR.050727-5400)
CodeBase: file:///C:/Windows/Microsoft.NET/Framework/v2.0.50727/mscorlib.dll
----------------------------------------
ESRI.ArcGIS.ArcDiagrammer
Assembly Version: 10.0.1.0
Win32 Version: 10.0.1
CodeBase: file:///C:/Program%20Files%20(x86)/ArcGIS%20Diagrammer/BIN/ESRI.ArcGIS.ArcDiagrammer.exe
----------------------------------------
System.Windows.Forms
Assembly Version: 2.0.0.0
Win32 Version: 2.0.50727.5467 (Win7SP1GDR.050727-5400)
CodeBase: file:///C:/Windows/assembly/GAC_MSIL/System.Windows.Forms/2.0.0.0__b77a5c561934e089/System.Windows.Forms.dll
----------------------------------------
System
Assembly Version: 2.0.0.0
Win32 Version: 2.0.50727.5467 (Win7SP1GDR.050727-5400)
CodeBase: file:///C:/Windows/assembly/GAC_MSIL/System/2.0.0.0__b77a5c561934e089/System.dll
----------------------------------------
System.Drawing
Assembly Version: 2.0.0.0
Win32 Version: 2.0.50727.5467 (Win7SP1GDR.050727-5400)
CodeBase: file:///C:/Windows/assembly/GAC_MSIL/System.Drawing/2.0.0.0__b03f5f7f11d50a3a/System.Drawing.dll
----------------------------------------
SandBar
Assembly Version: 1.4.2.1
Win32 Version: 1.4.2.1
CodeBase: file:///C:/Program%20Files%20(x86)/ArcGIS%20Diagrammer/BIN/SandBar.DLL
----------------------------------------
ESRI.ArcGIS.ExceptionHandler
Assembly Version: 10.0.1.0
Win32 Version: 10.0.1
CodeBase: file:///C:/Program%20Files%20(x86)/ArcGIS%20Diagrammer/BIN/ESRI.ArcGIS.ExceptionHandler.DLL
----------------------------------------
ESRI.ArcGIS.Diagrammer
Assembly Version: 10.0.1.0
Win32 Version: 10.0.1
CodeBase: file:///C:/Program%20Files%20(x86)/ArcGIS%20Diagrammer/BIN/ESRI.ArcGIS.Diagrammer.DLL
----------------------------------------
SandDock
Assembly Version: 3.0.5.1
Win32 Version: 3.0.5.1
CodeBase: file:///C:/Program%20Files%20(x86)/ArcGIS%20Diagrammer/BIN/SandDock.DLL
----------------------------------------
Crainiate.ERM4
Assembly Version: 4.1.2966.41885
Win32 Version: 4.1.2966.41885
CodeBase: file:///C:/Program%20Files%20(x86)/ArcGIS%20Diagrammer/BIN/Crainiate.ERM4.DLL
----------------------------------------
Accessibility
Assembly Version: 2.0.0.0
Win32 Version: 2.0.50727.4927 (NetFXspW7.050727-4900)
CodeBase: file:///C:/Windows/assembly/GAC_MSIL/Accessibility/2.0.0.0__b03f5f7f11d50a3a/Accessibility.dll
----------------------------------------
System.Xml
Assembly Version: 2.0.0.0
Win32 Version: 2.0.50727.5420 (Win7SP1.050727-5400)
CodeBase: file:///C:/Windows/assembly/GAC_MSIL/System.Xml/2.0.0.0__b77a5c561934e089/System.Xml.dll
----------------------------------------
System.Security
Assembly Version: 2.0.0.0
Win32 Version: 2.0.50727.5467 (Win7SP1GDR.050727-5400)
CodeBase: file:///C:/Windows/assembly/GAC_MSIL/System.Security/2.0.0.0__b03f5f7f11d50a3a/System.Security.dll
----------------------------------------
System.Configuration
Assembly Version: 2.0.0.0
Win32 Version: 2.0.50727.5420 (Win7SP1.050727-5400)
CodeBase: file:///C:/Windows/assembly/GAC_MSIL/System.Configuration/2.0.0.0__b03f5f7f11d50a3a/System.Configuration.dll
----------------------------------------
************** JIT Debugging **************
To enable just-in-time (JIT) debugging, the .config file for this
application or computer (machine.config) must have the
jitDebugging value set in the system.windows.forms section.
The application must also be compiled with debugging
enabled.
For example:
<configuration>
<system.windows.forms jitDebugging="true" />
</configuration>
When JIT debugging is enabled, any unhandled exception
will be sent to the JIT debugger registered on the computer
rather than be handled by this dialog box.