Omg thank god I'm not alone. Its weird Everquest 2 runs perfectly from laucher or .exe but when ran from innerspace just gives the stupid msvcrt.dll message and acts like its loading but gets stuck on the patching part of isx. I did the following stuff trying to fix this issue and I still am not any closer:
restarted computer, restarted cable modem, restarted router, got the msvcrt.dll from the windows install (windows xp pro 64bit) and used the recovery console to copy it over thinking it was the file (btw make sure u backup old one other wise u get a blue screen loop if the new one is the wrong one, installed the latest windows updates, uninstalled everquest2 and ran iobit.com's registry cleaner and system deep clean then restarted and redownloaded and installed, removed antivirus thinking it had a false positive somewhere and auto removing stuff, picked a few system restore points one of them a month ago. Still nothing and its 5am and I cant think of anything else I can try other then reinstalling windows but a friend lets me use this computer so thats not really an option, oh also copied all the innerspace stuff from my computer that is working.
/shrug