Edited: Read an update on getting a resolution to this issue at: http://jberke.blogspot.com/2008/10/typelibbuilderexe-crashes.html.
Edited: Read the final update on this issue:
After searching around and trying some of the suggested solutions which were all from the beta version of VS. I still had the error. I filled an issue on Microsoft Connect, and after some time, was contact by a Microsoft Developer. By the way this developer gave me some of the best support I've ever had from a third party so hats of to you :-).
There is no patch available yet; however, I will update this post once one is available. Hopefuly this post will help save you the months of annoyance and frustration. If it did leave a comment, I'm interested to know how many people might be impacted by this.