I literally just downloaded SP1 for 7, and I am having the exact same problem on my 32bit desktop. My 64 bit machine, I just downloaded the latest version, and everything is working fine. It is only the 32bit machine having a problem. I am getting the same error message as you are.

DisableTaskBarOnTop is seriously one of my favorite programs. Tweaker, if you are still working on this let us know what might help.
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Am I the only one seeing this problem in 32 bit ?
On a second 32-bit machine where I tried, the same problem occurs. Before my Windows 7 SP1 update, your tool worked perfectly on these systems, so you see the picture.