Hi,
Ran into the same issue. Reinstalled .Net 2.0
but the issue persisted.
Came across this article
http://forums.microsoft.com/MSDN/ShowPost.aspx?PostID=525809&SiteID=1
which pointed me to
http://support.microsoft.com/?kbid=903205
While the version in the KB didn't matchup, I did check
msdb.dbo.syssubsystems and found that the BINN directory listed in
the paths was missing in action. Somebody else did a reinstall of SQL2K5 on the box and I think the registry or MSDB didn't get updated
with the new path.
As a test, I copied over the BINN directory from mssql.3 to mssql.1 and restarted SQL Agent. The jobs now run without error. Probably a better way to fix this but it's Saturday so this will do for now.