+1  A: 

I suspect the issue is that you are not properly closing (quitting) your QT app instance (if you check your task manager you may see it running) so the subsequent runs fail to initialize properly.

There is a decent blog post where Grant Holliday automates QT for running under Team Build. Many of the same principles would apply.

http://ozgrant.com/2008/02/28/running-hp-quicktest-professional-ui-tests-with-team-build/

If that's not the issue you'll need to provide more details about what you do with the QT application object.

Bubbafat
I thought so at first, which is why I tried a full reboot. However, it's throwing the exception on first run after reboot. Before that run, I verified that no QTP objects/processes were in memory.
ssakl
I am accepting this as the answer because there is definitely something not closing properly, but it does not seem to be QTP itself.
ssakl
A: 

Hi ssakl, I am having the exact same issue as you describe in the document. Did you ever find a solution? We have been banging our head over trying to figure it out.

Thanks - tom

Tom
@Tom - No, I did not. We didn't have the bandwidth to spend time on it. What I ended up doing was taking what I learned from my C# code and using those lessons to rewrite my VBScript code to be more modular and readable.
ssakl