How to solve an error "the type initializer for '__' threw an exception"

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VB

VS2010

When I tried to open an existing project From Visual Studio 2010

error : The type initializer for 'Microsoft.VisualStudio.Build.ComInteropWrapper.ProjectShim' threw an exception.

Visual Studio 2012

error : The tools version "4.0" is unrecognized. Available tools versions are "12.0", "2.0", "3.5".

the .vbproj file shows toolversion as 4.0

i tried to change tooversion to 4.5 and could not open from VS2012.

When I go to registry, I see tool versions 12.0, 2.0,3.5,4.0 installed.

<?xml version="1.0" encoding="utf-8"?>
<Project ToolsVersion="4.5" DefaultTargets="Build" xmlns="http://ift.tt/PiGwmX">
  <PropertyGroup>
    <Configuration Condition=" '$(Configuration)' == '' ">Debug</Configuration>
    <Platform Condition=" '$(Platform)' == '' ">AnyCPU</Platform>
    <ProductVersion>
    </ProductVersion>
    <SchemaVersion>
    </SchemaVersion>
    <ProjectGuid>{}</ProjectGuid>
    <ProjectTypeGuids>{}</ProjectTypeGuids>
    <OutputType>Library</OutputType>
    <RootNamespace>abcd</RootNamespace>
    <AssemblyName>abcd</AssemblyName>
    <TargetFrameworkVersion>v4.0</TargetFrameworkVersion>
    <MyType>Custom</MyType>
    <UseIISExpress>false</UseIISExpress>
  </PropertyGroup>

On VS 2010 I get the same error for new project The type initializer for 'Microsoft.VisualStudio.Build.ComInteropWrapper.ProjectShim' threw an exception. Creating website is not an issue.

I uninstalled VS2010, and reinstalled it, same error occurs.

What I have tried:

Honestly, i have no idea therefore tried nothing yet. please guide me through. thank you!