ok. Dang it I don’t like C++ and I was getting this error trying to compile a solution. Since searching in google doesnt give anything (do c++ developers use the internet yet?) I am posting this here for the next unlucky soul. What it means is that file is missing from an executable path or include path. What I did to fix was find midl.exe in another directory (C:\Program Files\Microsoft Visual Studio .NET 2003\Common7\Tools\Bin to be exact) and then copied it to

C:\program files\Microsoft Visual Studio .NET 2003\Vc7\bin

and

C:\program files\Microsoft Visual Studio .NET 2003\SDK\v1.1\Bin

and then my solution finally compiled. :)