Hello,
This almost certainly indicates that the .Net Framework is not installed. Please install version 2.0 or greater and see if that helps. You can download 2.0 here:
http://www.microsoft.com/downloads/en/details.aspx?FamilyID=0856eacb-4362-4b0d-8edd-aab15c5e04f5&displaylang=en
Also, while you’re in the process of installing things, you may want to download the latest released FactorySQL, version 4.2.12.
Regards,