No script engine for file extension VBS

When trying to run a script on a server with SBS 2k the following error message is shown:
‘There is no script engine for file extension VBS’.
The server is fully patched (including Exchange 2000 SP3). I have looked at the file association section in Windows Explorer and VBS files are set to open with C:\WINNT\System32\WScript.exe “%1” %*
This application is present in the System32 directory!
I have no doubts that this is a Microsoft security measure but does anybody know of a way to work around this problem?