Thanks a lot for responding guys! Like Red Vector mentioned, I have verified that there is a Protect folder in the C:Users directory.
Yang, I could not find any data in any of the log files on this server. I have peeped into Filereader0.log too!
Finally though it seemed to work fine..when i un-installed both Vontu and Visual C++ from the vm and rebooted it and then installed them again. Also, i went in to Users directory on the C drive and deleted all the protect folder and it's companion (protect_update).
So with a fresh install of Vontu detection server and Visual C++ 2008..i got away with those errors/events.
NOW, i have a new event..
"Failed to load database profile"
Failed to load RAM index from E:\Vontu\Protect\index\DataSource.1.109.rdx.
No incidents will be detected against database profile "CORP Source" version 109.