No luck :/
Just to be clear, you meant the 7th Heaven folder and not the entire FFVII folder?
I get the same error message. I downloaded a new 7th Heaven workshop, deleted the old one, extracted the new, removed previous Game Converter keys, and run Game Converter again.. Game Converter seemed fine. I'm so puzzled. I also ran the NET Frameworks Repair Tool from Microsoft and it seemed fine. I do get Framework errors in the Event Viewer though..
So the problem lies within 7th Heaven internally, and not so much do with files or something else on my computer you think?