I looked up the error - all signs point to that you need the MSVC runtime libraries.
I'm not sure which ones you need - I'm guessing you want x86 libraries since this an x86 application. But there's a 2005 package, a 2008 SP1 package, and a 2010 package, and I don't know if they are backwards compatible or not. I'll see if I can figure it out.
Yeah, I've got all of those installed, though, maybe some files are corrupt or I need an x86 instead of x64, or something? I'll go and reinstall the ones I have and see if there's any missing.
EDIT: Reinstalled all vcredist_x86 and x64 packages I could find (there are like ten of them including the updates), still no change. Tried running as an admin, as well, and no dice there either. Weird. Sounds like it might be an issue of Steam's DRM getting in the way.