"bzr version" crashes: msvcrt.dll procedure entry point could not be located

[BoskoM]

Windows XP SP2
Upgraded from Bazaar v1.9 to Bazaar v1.12
Installer used: http://launchpad.net/bzr/1.12/1.12/+download/bzr-setup-1.12-1.exe
msvcrt.dll 7.0.2600.2180 (xpsp_sp2_rtm.040803-2158)
Installed Bazaar v1.12 and restarted computer (as required)

In command prompt after typing:
> bzr version

first appeared message box with the message:

---------------------------
bzr.exe - Entry Point Not Found
---------------------------
The procedure entry point ___lc_collate_cp_func could not be located in the dynamic link library msvcrt.dll.
---------------------------
OK
---------------------------

Then:

Bazaar (bzr) 1.12
bzr: ERROR: exceptions.ImportError: bzr-svn: unable to find subvertpy. Please in
stall from http://launchpad.net/subvertpy.

Traceback (most recent call last):
  File "bzrlib\commands.pyo", line 896, in run_bzr_catch_errors
  File "bzrlib\commands.pyo", line 842, in run_bzr
  File "bzrlib\commands.pyo", line 542, in run_argv_aliases
  File "bzrlib\commands.pyo", line 856, in ignore_pipe
  File "bzrlib\builtins.pyo", line 3131, in run
  File "bzrlib\version.pyo", line 38, in show_version
  File "bzrlib\version.pyo", line 96, in _get_bzr_source_tree
  File "bzrlib\bzrdir.pyo", line 844, in open_containing
  File "bzrlib\bzrdir.pyo", line 865, in open_containing_from_transport
  File "bzrlib\bzrdir.pyo", line 819, in open_from_transport
  File "bzrlib\lazy_import.pyo", line 125, in __call__
  File "bzrlib\transport\__init__.pyo", line 1680, in do_catching_redirections
  File "bzrlib\bzrdir.pyo", line 806, in find_format
  File "bzrlib\bzrdir.pyo", line 1645, in find_format
  File "C:/Program Files/Bazaar/plugins\svn\format.py", line 86, in probe_transp
ort
  File "C:/Program Files/Bazaar/plugins\svn\format.py", line 56, in _check_versi
ons
  File "C:/Program Files/Bazaar/plugins\svn\__init__.py", line 103, in lazy_chec
k_versions
  File "C:/Program Files/Bazaar/plugins\svn\__init__.py", line 86, in init_subve
rtpy
ImportError: bzr-svn: unable to find subvertpy. Please install from http://launc
hpad.net/subvertpy.

bzr 1.12 on python 2.5.2 (win32)
arguments: ['bzr', 'version']
encoding: 'cp1252', fsenc: 'mbcs', lang: None
plugins:
  bzrtools C:\Program Files\Bazaar\plugins\bzrtools [1.12]
  launchpad C:\Program Files\Bazaar\plugins\launchpad [unknown]
  netrc_credential_store C:\Program Files\Bazaar\plugins\netrc_credential_store
[unknown]
  qbzr C:\Program Files\Bazaar\plugins\qbzr [0.9.8]
  svn C:\Program Files\Bazaar\plugins\svn [0.5]
  xmloutput C:\Documents and Settings\administrator.BELGRADE\Applicat
ion Data\bazaar\2.0\plugins\xmloutput [0.8.1]
*** Bazaar has encountered an internal error.
    Please report a bug at https://bugs.launchpad.net/bzr/+filebug
    including this traceback, and a description of what you
    were doing when the error occurred.