I was having this problem too - select Media Center from the start menu, get about a 3 second pause, then that exact error every time (though the Process and Thread id's varied).
I'm guessing there's a number of things that could cause something like this but for me, as far as I can tell, it turned out to be the "Security Accounts Manager" was disabled. I'd noticed a few system errors in the event viewer that showed things failing to start due to requiring that service. So I set the service to automatic, rebooted, and now Media Center is working again.
So that might be worth a try?
(right click My Computer, select Manage, expand "Services and Applications", click Services, find Security Accounts Manager, right click it and select Properties, change Startup Type to Automatic, reboot)