Error when trying to create a new query

LANDesk Service Desk 7.4 using the module Incident, BO: Assignment:

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************** Exception Text **************
System.InvalidOperationException: Client found response content type of 'text/html; charset=utf-8', but expected 'text/xml'.
The request failed with an empty response.
   at System.Web.Services.Protocols.SoapHttpClientProtocol.ReadResponse(SoapClientMessage message, WebResponse response, Stream responseStream, Boolean asyncCall)
   at System.Web.Services.Protocols.SoapHttpClientProtocol.Invoke(String methodName, Object[] parameters)

Any ideas?

Full error message is attached.

I tried doing a search but all the results I have found point to the error when logging into the console, I have treid installing WSE 2.0

OS: Windows 7