This enhancement has been incorporated in Release 2008a (R2008a). For previous product releases, read below for any possible workarounds:
If your application fails when using MATLAB Engine, there are two things that you should check:
1. Be sure that the MATLAB version you linked against is first in your system PATH environment variable.
2. Open a DOS command prompt and then change your working directory to MATLABROOT/bin/win32 using the CD command, where MATLABROOT represents the directory in which MATLAB is installed on your system. After that, issue the command ".\matlab /regserver" and then close the MATLAB window that appears. This registers that version of MATLAB as a COM automation server. This is required for proper Engine startup.
Alternatively (for #2), run the following command from MATLAB and then close both MATLAB's:
eval(['!', '"', fullfile(matlabroot,'bin','win32','matlab.exe'), '"',' /regserver &'])
