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One or more properties of the Web Part has an incorrect format

You may get the following error message when trying to add a web part in Windows Sharepoint Services:

Web Part Error: One of the properties of the Web Part has an incorrect format. Windows SharePoint Services cannot deserialize the Web Part. Check the format of the properties and try again.

As per KB826786, the permissions may have been reset on two directories. Set them like this:

%WinDir%\Temp
Administrators - Full Control
SYSTEM - Full Control
STS_WPG - Read, Write
Network Service (for a domain controller only) - Read, Write

%WinDir%\system32\logfiles
STS Administrators - Full Control
SYSTEM - Full Control
STS_WPG - Read, Write
Network Service (for a domain controller only) - Read, Write