That file doesn't belong in \Windows\system32. On my Win 7 Pro X64 system, it's in several places: What is msvcr80.dll doing on my computer?
msvcr80.dll is a module associated with Microsoft Visual Studio 2005 from Microsoft Corporation. It is the Microsoft C Runtime Library and is used by programs written with Microsoft Visual Studio 2005.
It is required for the proper functioning of Visual Studio so it should not be removed.
Non-system processes like msvcr80.dll originate from software you installed on your system.
Sounds like this might be a left over or corrupted registry entry. Have you added or removed any software recently?