According to the best information I could find it is most likely that SQL Server can't locate a referenced DLL, i.e., MFC40.DLL as you mentioned.  I just checked it against a Win 2003 box and got the same result.  It appears that there's a DLL out there that's not on the System Path on Win 2003.  I'll keep looking for it and let you know what I find.  Here's an MS article on it:

http://support.microsoft.com/default.aspx?scid=kb;en-us;151596

Sorry about that (didn't have a Win 2003 test box at the time I did this).