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If you are upgrading from TFS 2010 Beta2 and upgrade inplace to TFS 2010 RC or RTM, you may notice after upgrade a warning that IISRESET failed. The warning instructs you to run it manually. Running it manually results in the same error:
The system cannot find the file specified. (2147942402, 80070002)
IISRESET failing is not a problem for TFS, but nevertheless you may want to address this. To fix it, open Add / Remove Programs (appwiz.cpl) and run Repair on the .NET 4.0 Client component. This requires a reboot.