Ok I have tried every recommendation I can fine. I have a fresh install of win7 I tried many version of avr studio and all of them give me this error during install (completes anyways) and when I run the application.
I have installed the C++ redistributes for 86 and 64 along with .net 4 and 5 and also I installed 2010 VS and it works fine.
I'm out of options here and cant figure this out? is there a log file that will give me more details.