Yeah, I get it too with v1.10.143 on WinXP SP3, fully patched. This is the reason I was on the forum in the first place. Uninstall, reboot, reinstall, error still occurs.
Although Windows reports the app as having crashed, once you move that Window aside (do not close), you can then select Settings | Options menu and uncheck "Automatically check for updates to Defraggler" and hit OK. Subsequent app launches are successful, proving this is the problem functionality. My employer user some Sophos product on our company's proxy server.