I found this, although it involved upgrading from DP 8.0 to 8.1
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This is known Windows system issue described windows support page:
http://support.microsoft.com/kb/970652">http://support.microsoft.com/kb/970652 - Error 1935.An error occurred during the installation of assembly Microsoft.VC90.ATL version
Cause:
An unsuccessful install of prior Windows Updates OR Custom MSI packages
could have left over faulty registry keys under HKEY_LOCAL_MACHINE\COMPONENTS
Resolution:
Run the following tool to fix: http://support.microsoft.com/default.aspx?scid=kb;EN-US;946414">http://support.microsoft.com/default.aspx?scid=kb;EN-US;946414