Not really sure if it's a bug but what happens is from time to time (generally after i shut down my pc and load it up again, Or install a new mod)
i get this error on opening the game

Now i got a temporary fix for this but it been happening for a couple of weeks and now starting to be irritating.
The temporary fix requires simply replacing the file with an older version (thanks to a post on the internet for telling me, the site name escapes me as of now)
although this doesn't really stop me from playing it does get annoying having to replace the file every day.

so have anyone else had this problem and fixed it fully?

The Only Time i've seen this bug is when a mod hasn't loaded correctly so naturally i have to ask have you change anything?

inside the base folder itself? Nope, it only happen randomly once i installed roughly 5 or so mods in at once. the game works correctly just always after i replace the file with a new one i may re-install the game again cause i yet to do that for some reason (might be cause i'm always forgetting to do so.)

Where did you install the game? Program Files? And do you have Vista or Windows 7?
If so: Try moving the CC folder elsewhere.

I heard a lot of stories of settings.ini suddenly 'corrupting'. I never had this/don't buy it myself, but perhaps your Windows is secretly being annoying, not allowing CC to modify settings.ini.
Yeah, just shooting blanks here.

i have Vista and it's on my Z-drive, i would move it to my C-drive (desktop) however for some odd reason my Pc LOVE to fill my C-drive up with random Load of crap that has nothing to do or no way of getting rid of it,

I had the same problem.
But I followed what Gotcha! said and moved it and it works fine, it wouldn't work for me if it was placed in my program files x86 folder.