OK so I'm going to explain this all and if anyone has any thoughts on this please let me know because why this is happening is beyond me.  
 
First off some background. I built a new workstation and installed Windows XP Pro and then downloaded all the updates (SP2 and all that good stuff). Then I installed the Pervasive (Pervasive.SQL V8) and DBA Classic (2004.1 IS Tech update 5/8/06)-(because sometime people like to still use DBA because its a bit faster for doing somethings, at least in their minds). This all went great.  
 
Then I tried to install Evo (2006.1 5/8/06) and for the longest time (about 2 weeks) I could not get Evo to install (note: I'm installing Evo from a networked server drive). Then one day for no good reason it just installed and worked.  
 
Then about a week later I started getting a message the said something like "Updating runtime". I clicked OK and Evo would load and I could login and everything worked fine.  
 
Then a few days ago I stopped getting the update runtime message and started getting a message that reads:
 
There is a misatching of Evo engines on this machine. Please re-run the workstation setup by running START-RUN K:\Evoerp.exe K:\
 
So I clicked OK and was allowed to login and Evo still worked fine, but to get the message to go away I did what it suggested and re-ran the workstation setup.  
 
When I ran the workstation setup I received the following messages in the order listed, and they were received back to back and after clicking OK on all of them the workstation setup didn't run and I am still getting the message about needing to re-run the workstation setup.  
 
Access viloation at address 0040588D in module 'evoerp.exe' Read of address 00000016.
 
Out of memory during program load or unable to load the program K:\SUWIN&.RWN
 
Unable to load license
 
I'm not sure why this is happening, because its only happening on the one workstation and we have several other workstations that are just like it (hardware, software and all are the exact same). I also can't find a good reason as to why the message switched from updating runtime to the one about needing to re-run the workstation setup and why the workstation setup doesn't want to work correctly (note: the workstation setup doesn't want to work correctly on other machines also).
 
Was thinking about updating to the 10/31/06 to see if that helped but wanted to see if I could get Evo working correctly as is before doing the update so if we had problems we would know if it was the update or something else.  
 
Please, any help would be great. Thanks.

I have already tried turning off the Firewall (on both the workstation and on the server) and that didn't help.  
 
I checked the dates on the runtime and they appear to be the same, also tried running Evo with the firewalls off and that didn't help.  
 
Any other suggestions, thanks.