If you get the error “Could not instantiate the resource processor” when trying to build a project with .resx file, you should need to reinstall the .Net framework.
Other symptoms of the problem could be missing empty Toolbox, problems with the Project Properties window (or the Solution Properties) – not showing the properties as usual.
To reinstall the .Net framework locate the dotnetfx.exe file in the installation source and run the command:
dotnetfx.exe /t:%temp% /c:"msiexec.exe /fvecms %temp%\netfx.msi"
For more information look in the file C:\WINDOWS\Microsoft.NET\Framework\v1.1.4322\1033\repairRedist.htm on local hard drive.