To start: I understand what this error means - I\'m not attempting to resolve an instance of it.
This error is notoriously difficult to troubleshoot
It turns out there's an open "feature request" for this on MS Connect - I'd encourage you to vote for it if you'd like the functionality changed.
https://connect.microsoft.com/SQLServer/feedback/details/339410/
ADDED:
It actually looks like there's another request for this same feature (though poorly named) that's been outstanding since Yukon's development in 2005 that I'd encourage people to vote for as well:
https://connect.microsoft.com/SQLServer/feedback/details/125347/
Update 2016
It seems Microsoft has tried to delete evidence of this bug's true age. Fair enough. Find the old site archived here.