I'm seeing the same error as "els", for Win7 Ultimate x64, also a VM with all Windows updates.

I have the following MS VS related entries listed in Programs and Features

Microsoft .NET Framework 4 Client Profile
Microsoft Visual C++ 2008 Redistributable - x86 9.0.30729.17
Microsoft Visual C++ 2008 Redistributable - x86 9.0.30729.6161