I also receive this error. I haven't been able to find a workaround, and had previously 'uninstalled' Adobe Reader X to an earlier version which worked...this was about a month ago, but after 'persistent' Adobe Updater requests, I upgraded again and now this problem is back!
It's a real pain for sure....
There was another issue in the forum not quite like this one but as I read thru it the discussion turned to talk about Protected Mode and its effect on earlier versions of Windows than mine (Win7 Ultimate 64bit). I decded to try turning off protected mode and now I no longer get the application error. I don't know why it worked but it did.
Thanks for the reply and suggestion - unfortunately, I get this error when I open Adobe Reader X itself in addition to launching a pdf within IE9 (my OS is Win7x64 Ultimate). I can launch Adobe Reader X, but when I open any kind of PDF file (local copy, remote, web, etc...) the error dialog box pops up. Everything seems functional with Reader, it's just a frustrating (er, irritating!) thing! I think after the weekend I will 'give up' and remove the Reader X and go back to my 'old' (but functioning!) Reader - thanks for the comment and suggestion tho!