WPF Bitmap image constructor Error IE10

As We installed IE10 on windows 7 SP1 we started to get error while we are creating bit map image by passing URI to constructor. Below is stack trace of error.

{System.IO.FileNotFoundException: The system cannot find the file specified. (Exception from HRESULT: 0x80070002)
   at System.Runtime.InteropServices.Marshal.ThrowExceptionForHRInternal(Int32 errorCode, IntPtr errorInfo)
   at MS.Win32.WinInet.get_InternetCacheFolder()
   at System.Windows.Media.Imaging.BitmapDownload.BeginDownload(BitmapDecoder decoder, Uri uri, RequestCachePolicy uriCachePolicy, Stream stream)
   at System.Windows.Media.Imaging.LateBoundBitmapDecoder..ctor(Uri baseUri, Uri uri, Stream stream, BitmapCreateOptions createOptions, BitmapCacheOption cacheOption, RequestCachePolicy requestCachePolicy)
   at System.Windows.Media.Imaging.BitmapDecoder.CreateFromUriOrStream(Uri baseUri, Uri uri, Stream stream, BitmapCreateOptions createOptions, BitmapCacheOption cacheOption, RequestCachePolicy uriCachePolicy, Boolean insertInDecoderCache)
   at System.Windows.Media.Imaging.BitmapImage.FinalizeCreation()
   at System.Windows.Media.Imaging.BitmapImage.EndInit()
   at System.Windows.Media.Imaging.BitmapImage..ctor(Uri uriSource, RequestCachePolicy uriCachePolicy)
   at System.Windows.Media.Imaging.BitmapImage..ctor(Uri uriSource)
   at HallPass.PL.User_Controls.HallPass_Tab.HallPassControl.PopulateExistingVisitor(SchoolVisitorsResData schoolVisitorsResData) in D:\Web Projects\HallPass Project\HallPass\HallPass.PL\User Controls\HallPass Tab\HallPassControl.xaml.cs:line 3255}

It was working fine before IE10 upgrade.

Also just to share it is not working on some of the system including mine and working one or 2 machine in our organization with same environment (i.e. IE10 and Windows 7 SP1)  

I think this could be an issue with a missing update/hot fix but i am not sure.

Please help ASAP

Thanks

surya

surya_damco@hotmail.com