I have seen reports of people having and additional, self terminating node in the machine.config file. Removing it resolved their issue. machine.config is found in \Windows\Microsoft.net\Framework\vXXXX\Config
. You could have a multitude of config files based on how many versions of the framework are installed, including 32 and 64 bit variants.
<system.data>
<DbProviderFactories>
<add name="Odbc Data Provider" invariant="System.Data.Odbc" ... />
<add name="OleDb Data Provider" invariant="System.Data.OleDb" ... />
<add name="OracleClient Data Provider" invariant="System.Data ... />
<add name="SqlClient Data Provider" invariant="System.Data ... />
<add name="IBM DB2 for i .NET Provider" invariant="IBM.Data ... />
<add name="Microsoft SQL Server Compact Data Provider" ... />
</DbProviderFactories>
<DbProviderFactories/> //remove this one!
</system.data>