Catalog and Inventory Schema Manager gives error after installing Commerce Server 2007 SP2

After installing Commerce Server 2007 SP2 when you attempt to start the Catalog and Inventory Schema Manager or another one of the business management tools instead of starting you receive an exception error.

Example error:

System.TypeInitializationException: The type initializer for 'Microsoft.CommerceServer.UI.CatalogSchemaEditor.AppProperties' threw an exception. ---> System.Xml.XmlException: Root element is missing.

Although this is not a common occurrence, old data stored in the cache directories for the Commerce Business Management tools may need to be removed to allow the applications to start successfully.  Here are some steps to resolve the issue.

First make sure all business management applications are shut down.

To remove all old data go to the users application data folder by entering %appdata% on the Run command line.  This should open the folder

Windows XP/2003 = C:\Documents and Settings\<user>\Application Data
Vista = C:\Users\<user>\AppData\Roaming

In the directory open the Microsoft folder and delete the following directories:

Commerce Server Catalog Manager
Commerce Server Schema Editor

Once the folders are removed you should be able open the business management tools and the folders will be recreated. 

Any connection settings that had been saved previously will need to be recreated.