Description of Error:
Windows could not start the application virualization client service on local computer.
Error 1114: A dynamic link library (DLL) initilization routine failed.

Solution1: Our previous global data directory was set ioncorrectly and preventing the service from starting (weird I know)
Change the Previous GLobal Data Dir to match that of GlobalDataDirectory in the windows registry
[HKEY_LOCAL_MACHINESOFTWAREMicrosoftSoftGrid4.5ClientConfiguration]
“PreviousGlobalDataDirectory”=”C:%YOUR_APPV_CACHE_DIR%Global”
Our service started immediately after this change.

Solution2:
reregister all dll’s, and MOF files – we found the script from this blog – thanks goes to Jeff for posting this one up.
http://jeffwouters.nl/index.php/2011/04/wmi-error-when-viewing-dependencies-of-services/

Solution3: The WMI repository on the local server was corrupted (you can test this by going to the service properties and clicking the dependencies tab and you may get a WMI: Error)
At that stage you need to reinatsll / reregisted all WMI files, dlls etc – or restore the WMI repository from another working server
1) wmimgmt.msc – on a remote working server, right click properties, Backup/Restore tab, backup now (will save file locally)- restore this file to the broken server via the same method – only clicking the ‘Restore Now’

Other References / URLs: http://support.microsoft.com/kb/931096