Error running powershell workflow via workflow application - Could not find a part of the path to PSWorkflow.types.ps1xml'

Hello,

I have rehosted workflow designer. My machine is running Windows 7 sp1 . I  have downloaded and installed powershell 3.0 . I added the Powershell management activity and created a sample workflow as attached.

<Activity mc:Ignorable="sads sap" x:Class="CustomWorkflowDesigner.Activity1" sap:VirtualizedContainerService.HintSize="262,186" mva:VisualBasic.Settings="Assembly references and imported namespaces for internal implementation"
 xmlns="http://schemas.microsoft.com/netfx/2009/xaml/activities"
 xmlns:mc="http://schemas.openxmlformats.org/markup-compatibility/2006"
 xmlns:mpma="clr-namespace:Microsoft.PowerShell.Management.Activities;assembly=Microsoft.PowerShell.Management.Activities"
 xmlns:mv="clr-namespace:Microsoft.VisualBasic;assembly=System"
 xmlns:mva="clr-namespace:Microsoft.VisualBasic.Activities;assembly=System.Activities"
 xmlns:s="clr-namespace:System;assembly=mscorlib"
 xmlns:s1="clr-namespace:System;assembly=System"
 xmlns:s2="clr-namespace:System;assembly=System.Xml"
 xmlns:s3="clr-namespace:System;assembly=System.Core"
 xmlns:s4="clr-namespace:System;assembly=System.ServiceModel"
 xmlns:sad="clr-namespace:System.Activities.Debugger;assembly=System.Activities"
 xmlns:sads="http://schemas.microsoft.com/netfx/2010/xaml/activities/debugger"
 xmlns:sap="http://schemas.microsoft.com/netfx/2009/xaml/activities/presentation"
 xmlns:scg="clr-namespace:System.Collections.Generic;assembly=System"
 xmlns:scg1="clr-namespace:System.Collections.Generic;assembly=System.ServiceModel"
 xmlns:scg2="clr-namespace:System.Collections.Generic;assembly=System.Core"
 xmlns:scg3="clr-namespace:System.Collections.Generic;assembly=mscorlib"
 xmlns:sd="clr-namespace:System.Data;assembly=System.Data"
 xmlns:sl="clr-namespace:System.Linq;assembly=System.Core"
 xmlns:st="clr-namespace:System.Text;assembly=mscorlib"
 xmlns:x="http://schemas.microsoft.com/winfx/2006/xaml">
  <Sequence sad:XamlDebuggerXmlReader.FileName="" sap:VirtualizedContainerService.HintSize="222,146">
    <sap:WorkflowViewStateService.ViewState>
      <scg3:Dictionary x:TypeArguments="x:String, x:Object">
        <x:Boolean x:Key="IsExpanded">True</x:Boolean>
      </scg3:Dictionary>
    </sap:WorkflowViewStateService.ViewState>
    <mpma:StartService DisplayName="Start-Service" sap:VirtualizedContainerService.HintSize="200,22" Name="[{&quot;mongos&quot;}]" />
  </Sequence>
</Activity>

 When I run workflow is faulted and a very inner exception shows this error

Somewhere as part of inner exception is this line - +  InnerException {"Could not find a part of the path 'C:\\windows\\system32\\windowspowershell\\v1.0\\modules\\psworkflow\\PSWorkflow.types.ps1xml'."} System.Exception {System.Management.Automation.CommandNotFoundException}

at Microsoft.PowerShell.Workflow.ActivityHostProcess..ctor(Int32 activityHostTimeoutSec, Nullable`1 languageMode)
   at Microsoft.PowerShell.Workflow.PSOutOfProcessActivityController.CreateNewActivityHostProcess()
   at Microsoft.PowerShell.Workflow.PSOutOfProcessActivityController.InitializeActivityHostProcesses()
   at Microsoft.PowerShell.Workflow.PSOutOfProcessActivityController..ctor(PSWorkflowRuntime runtime)
   at Microsoft.PowerShell.Workflow.PSWorkflowConfigurationProvider.CreatePSActivityHostController()
   at Microsoft.PowerShell.Workflow.PSWorkflowRuntime.get_PSActivityHostController()