When you try to run a test in MTM you get a dialog ‘Object reference not set to an instance of an object’
When trying to run a newly created manual test in MTM I got the error dialog
‘You cannot run the selected tests, Object reference not set to an instance of an object’.

On checking the windows event log I saw
Detailed Message: TF30065: An unhandled exception occurred.
Web Request Details Url: http://……/TestManagement/v1.0/TestResultsEx.asmx
So not really that much help in diagnosing the problem!
Turns out the problem was I had been editing the test case work item type. Though it had saved/imported without any errors (it is validated during these processes) something was wrong with it. I suspect to do with filtering the list of users in the ‘assigned to’ field as this is what I last remember editing, but I might be wrong, it was on a demo TFS instance I have not used for a while.
The solution was to revert the test case work item type back to a known good version and recreate the failing test(s). Its seems once a test was created from the bad template there was nothing you could do about fixing it.
Once this was done MTM ran the tests without any issues.
When I have some time I will do an XML compare of the exported good and bad work item types to see what the problem really was.
Read the complete post at http://blogs.blackmarble.co.uk/blogs/rfennell/post/2011/12/16/When-you-try-to-run-a-test-in-MTM-you-get-a-dialog-‘Object-reference-not-set-to-an-instance-of-an-object’.aspx