Handheld Application Wizard has encountered a problem

Question

When starting up the Blackberry Desktop Software I get a message that the Handheld Application Loader Wizard has encountered a problem.  I also get a new hardware found and then a problem has occurred every time I plug in the USB cable to the phone. I've tried uninstalling and reinstalling the software without success.
PC is running XP SP3
BB Desktop 6.1.0.35
Other functions work.  I can synch music and backup.
I would appreciate any help.

Answer 1

I had the same error on my Torch using BBDTM (Desk Top Mgr) Version 6.1.0.35 for a while till I realized that when one installs new device software  (in my case : Software Name: BlackBerry Handheld Software v6.0.0.2391 for Torch version 6.0 Bundle 2391) it did not clear the 'AppLoader' folder of the previous files which was in my case the reason for the 'Handheld Application Loader Wizard' error.
You can skip the next paragraph unless you are curious.
Check out this link on your PC: ' C:\Program Files\Common Files\Research In Motion\AppLoader' and check what version the 'loader .exe' file is running, i.e. Loader.exe is probably File Version: 6.0.1.33 (I held my mouse over the file name 'Loader.exe' to see what version number ) ( by the way:  File Version: 6.0.1.37 meant also trouble on my PC as well). You can force this error by first retiring your DTM and then double click (run) the 'loader.exe' file...=> and you should get the familiar error without the DTM alive (clou here...).
What helped in my case: I highlighted all the files in the 'AppLoader' folder (C:\Program Files\Common Files\Research In Motion\AppLoader) and deleted them all. Make sure the folder is empty before the next step.
I then removed my 'Blackberry Device Software v6.0 for the Blackberry Smartphone ' on my PC via the 'Add or Remove Programs' accessed by the control panel. I then reinstalled the same software again and now I had the proper files in this folder with File Version: 6.0.1.15. (When I shut down the DTM and ran (double-clicked) the' loader.exe' file the loader wizard worked correctly. Depending on the service provider you might experience a different FileVersion but it should now work properly).
I don't know whether this will help in your case but it did for me. In case you are looking for the device software it can be found here:
http://us.blackberry.com/support/downloads/download_sites.jsp
find: North America   =>  in my case  I selected  'Bell Mobility Inc.' ( I guess each service provider gets their own version)
next page =>    'Download for Bell Mobility Inc.'
1. You must download both the desktop and handheld software to a temporary location on your hard  
drive.
2. Be sure to install the desktop software first, then the handheld software on your computer. The   
handheld software will update the software on your BlackBerry Wireless Handheld(TM)
I selected: BackBerry Torch 9800 smartphone and then downloaded the above device software.
What did I learn? There was no issue with the DTM or my Torch 9800 contrary to some comments elsewhere but with Windows XP 'Remove software'. 'Remove' did not remove obsolete files to allow  new AppLoader device files to load properly when the device software was reinstalled.
Good luck,
 BB4matt