Environment
Windows XP SP3 running iFolder 3.8.0.1 client and .NET 2.0 (no service packs or updates)
Situation
After upgrading the iFolder client from 3.8.0 to 3.8.0.1, the client becomes non responsive on start up or generates .NET errors etc.
Resolution
Verify that you have the latest .NET installed on the workstation from Microsoft.