unable to open project

I applied the latest service pack (2011.04.477) last week. now I am unable to open my project. I reinstalled the service pack, that did not work, so I downloaded the whole program, that also did not work. The program opens, but when I choose a project, after a long delay I get this message "Error #11265 - Network initialization failed." When I click okay it says "Could not create .\data\00000001.prj\ProAg. Reason: unknown error (11265)." Please help me resolve this issue. Thanks!

Pat