Launching Toad 10 (or 9.6.1) gave "AppName:toad.exe AppVer: X.X.X.X ModName: Kernal32.dll" OR Event Viewer error: ... Faulty module kernal32.dll.
The server option was chosen.
1. Go to Start | All Programs | Quest Software | Quest Installer | Quest Installer.
2. When the Quest Installer launches, please select to uninstall Toad and all its components.
3. Launch the Toad 10 installer again and be sure to select "Full" as the option to install.
For Toad for Oracle 9.6.1, fully un-installing and re-installing the Toad for Oracle program by itself also resolved the issue.