Solution:
There are 3 different ways to fix this problem. Try all and one of them should usually fix it:
1. Download and run LSPFix from here.
It should detect if there are any issues with your Layer Service Provider and fix them.
2. Reset Winsock
- Open the ‘Run’ dialog box from your Start Menu
- Type in ‘cmd’ to open a command prompt
- Type in ‘netsh’ and press Enter
- Type in ‘winsock’ and press Enter
- Type in ‘reset’ and press Enter
3. The following fix is what worked for me the last time this error occurred. It requires you to edit your system registry and close 2 ports – 445 and 135. It may or may not harm your system, so try it at your own risk. The steps may seem a little complicated too, so if you can’t get your head around it, don’t try them –
- Open the 'Run' dialog box from your Start Menu
- Type in ‘regedit.exe’ and press Enter to open your registry editor.
- Through the panel on the left, go to the following location:
HKEY_LOCAL_MACHINE/System/CurrentControlSet/Services/NetBT/Parameters
- Once that is done, highlight ‘Parameters’ by clicking on it once.
- On the right side of the window, double click on TransportBindName to edit its value.
- Delete whatever’s there in the ‘Value Data’ box and click on ‘OK’
[Closing the second port]
- Just as you did above, go to -
HKEY_LOCAL_MACHINE/Software/Microsoft/OLE
- Highlight OLE and double click on EnableDCOM on the right side.
- In the box that appears, set the value to ‘N’.
- Click on ‘OK’, shut the Registry Editor, and restart your PC.
This is one of the most interesting articles I've come across in a long time. Very cool stuff! 
