IconPackager Error

I just downloaded MyColors, installed it, restarted, and tried to apply the theme. It worked with the exception of IconPackager (?). When it was trying to change the Icons, it gave me this,

IconPackager has encountered a problem.........

The error signature was

AppName: iconpackager.exe  AppVer: 3.2.1.0            ModName: sysfer.dll

ModVer: 11.0.2000.1231       Offset: 000119ba

I am running XP/MCE with SP3 if that helps. I also uninstalled, reinstalled, and updated as well. Same thing.

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Every time I apply any theme in My Colors I get an Icon Package error. It tells me that I need to re-install the package and try applying again. Which I have. Several times. No help. I have IconPackager running in the background. Would this cause My Colors to fail to install the icons?
Windows XP SP2