Windows 2003 : Powershell: Internal Windows PowerShell error. Loading managed Windows PowerShell failed with error 80131522.

If after attempting to open Powershell you receive this error,
Internal Windows PowerShell error. Loading managed Windows PowerShell failed with error 80131522.

You may have already tried to re-install powershell and it's still failing to open.

Resolution:
Uninstall Powershell / Repair (in my case used the rapair option) or reinstall .net framework 2.0 / Install Powershell.

1. Uninstall Powershell.

STEPS:
I. Try and reinstall PowerShell by running the install file again, i.e.
WindowsServer2003-KB926139-x86-ENU.exe

-The uninstall will be listed in Add or Remove Programs as follows:
Windows Server 2003: "Hotfix for Windows Server 2003 (KB926139)"
Windows XP: "Windows PowerShell(TM) 1.0"

II. Manually remove the Installation folder(s):

Windows PowerShell 1.0 uses Package Installer technology for Windows XP-based and
for Windows Server 2003-based installations. The location of the Windows PowerShell
installation folder is not configurable.

On x86-based versions of Windows, Windows PowerShell 1.0 is installed in the
following folder:

%windir%\System32\WindowsPowerShell\V1.0

Note: in this folder, %windir% represents the Windows system folder. Typically,
this folder is C:\Windows.

By default, both the 32-bit and 64-bit versions of Windows PowerShell are installed
in the following locations on x64-based and Itanium-based versions of Windows:

The 64-bit version of Windows PowerShell is installed in the following folder:
%windir%\system32\WindowsPowerShell\V1.0

The 32-bit version of Windows PowerShell is installed in the following folder:
%windir%\Syswow64\WindowsPowerShell\V1.0

Note: in these folders, %windir% represents the Windows system folder. Typically,
this folder is C:\Windows.

III. Remove the registry key:

HKEY_LOCAL_MACHINE\SOFTWARE\Microsoft\PowerShell



2. Reinstall .Net Framework 2.0 or Repair if not able to reinstall.

Microsoft .NET Framework, versión 2.0, Redistributable Package (x86) (Paquete redistribuible de Microsoft .NET Framework versión 2.0)
http://www.microsoft.com/downloads/es-es/details.aspx?FamilyID=0856eacb-4362-4b0d-8edd-aab15c5e04f5&displayLang=es

How to repair an existing installation of the.NET Framework
http://support.microsoft.com/kb/306160/en-us


IV. Reinstall .NET Framework 2.0

Note: if you receive an error like the following, then chances are .NET Framework
2.0 is busted:

An error in updating your system has occurred.
Select 'OK' to undo the changes that have been made.


V. Check the Event logs for any errors/warnings with PowerShell and/or
MSIINSTALLER


VI. Confirm that WMI is functioning properly by grabbing a WMIDIAG log:
http://www.microsoft.com/downloads/details.aspx?FamilyID=d7ba3cd6-18d1-4d05-b11e-4c6
4192ae97d&DisplayLang=en

VII. Enable .MSI logging: KB223300 / KB314852