I randomly get this issue as well. Make sure Launcher AND any possible copies of the SCP exe are in fact terminated.
Sometimes, I have to set it fail and WITHOUT hitting "Ok" on the error, I run a debug version directly.
I then switch back to windows and End Task on both exe's and the launcher.
I've also had issues with having
of applications open at the time of running the exe and having the error. Especially if the app's are doing a lot of rendering. (Semi transparent Trillian, Winamp running Milkdrop, Photoshop CS3 Extended and at least one copy of PCS 2.0.1 will almost always reproduce the error for me.)
FYI to everyone else: It has _nothing_ to do with windows desktop color space. Re-read the error. The W32 is a generic reference to Win32 API.