Compatibility Issue with Windows 8.1

[abbyotero]

Hi I have a new computer, which runs windows 8.1.  I am attempting to install Wilcom E3.  I installed from the CD, then went to the site to install the latest updated version.  While installing this message popped up:

This program has compatibility issues: Microsoft SQL Server 2005

It gave me two choices, which were to run anyway, or to let them offer a solution.  I tried each one and neither worked. 

After installing completely, double clicking on the icon gives me this message:

C:/Program Files (x86)/EmbroideryStudio_e3/BIN/ES.exe

This application has failed to start because its side-by-side configuration is incorrect. Please see the application event log or use the command-line sxtrace.exe tool for more detail.

Any idea what I need to do to get this to install on my new laptop?