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.
This error is known to occur if your machine is missing the correct runtime components of C++ for your system type (x86 or x64).
I do know there was a patch that was announced for Windows 7 to resolve this issue. Not a Windows OS patch, but a Visual C++ patch. Please contact Microsoft regarding that or do a system update to install the microsoft security patches.
sxstrace is a tool that helps in detailed diagnostics and trace errors.
See if any of these helps if your system OS is 64 bit-
Microsoft Visual C++ 2008 SP1 Redistributable Package for (x64) - http://www.microsoft.com/downloads/en/details.aspx?familyid=BA9257CA-3 37F-4B40-8C14-157CFDFFEE4E&displaylang=en
Microsoft Visual C++ 2010 Redistributable Package (x64) - http://www.microsoft.com/downloads/en/details.aspx?FamilyID=bd512d9e-4 3c8-4655-81bf-9350143d5867
A KB doc exists for the similar error in CS4 that you might want to refer : http://helpx.adobe.com/creative-suite/kb/error-side-side-configuration-incorrect.html