Exception System.Arithmaticoverflow .NET

I happened to face exactly the same problem. This problem appeared on my machine when I was trying to work with two versions of .NET framework 1.1 and 2.0 Beta concurrently installed.
It was very annoying indeed as it was not letting any drawing/showing of dialogs as it would popup a message that unable to calculate because of Arithmatic Exception.
 
Anyway I figured out that this problem was because of corrupted version of .NET framework. And the binaries (.exes and .dlls) are either missing or corrupted in the installed .NET path. The .NET contains all the required libraries and executables to compile and run the .NET application. My problem was solved when i reinstalled .NET only. The CDs that comes with VS.NET installation have a separate CD containing the Windows Component Update. On this CD there is a specific folder having only the .NET installation setup with name something like dotnetfx etc. Just run this executable and hopefully your problem will be solved

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