Have you installed Windows 7 Service Pack 1?
Yes. That is listed in the minimum system requirements for After Effects for this exact reason.
I am so sorry, yes it is already installed. When I checked to see if it
was installed, after your comment, I saw:
Service Pack 1
but under Service Pack 1 in hyperlink it said "get more features with new addition on Windows 7"
so I misread that to think I had not yet installed SP1. My bad.
So in fact I already had it installed.
Any other ideas?