Encontrei esta resposta nos fóruns do Relic News que basicamente sugere a instalação manual do arquivo vcredist:
see the directory path in the error message? its probably because the difference between the temp directory in 7 and XP (i don't know, i'm just gamefreak).
so, in the game folder, open "data" folder, look for the "vcredist.zip" and extract both files in the same folder. after that, double click "vcredist.msi", browse path of the file itself. it will install the software-that-cannot-found-in-temp. after finish, you can continue installing the game.