exception has been thrown by the target of an invocation

I downloaded a sample DesignerHosting.exe (http://msdn.microsoft.com/msdnmag/issues/06/03/DesignerHosting/) and was trying to add a third party control on the toolbox. When I run the designer and tried to drag the component to the form, I get this error 'exception has been thrown by the target of an invocation'

Im running on .NET 2.0. I check on google and found some reference on some fixed on .NET 1 but I cannot use the service pack update 3 since Im on .NET 2.0.

Any help will be appreciated.

Thanks.

jfb