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Compatibility Issue with Windows 8.1

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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?


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