"side-by-side configuration is incorrect" error when launching Dead Island

My friend and I both bought the Dead Island game. I set up my copy and it works flawlessly but for my friend it responds with this message "The application has failed to start because its side-by-side configuration is incorrect. Please see the application event log or use the command-line sxstrace.exe tool for more detail". I searched the net exhaustively to find a solution but none of the answers has worked! I would really appreciate any help by you guys!,

We both run 32-bit Windows 7.