Searching the web for how to fix this will frustrate you to death. The fix is to download the latest .NET SDK (4.0 in this case) and run the installer. Download the redistributable exe, not the web downloader.
Download Link: http://www.microsoft.com/downloads/details.aspx?FamilyID=ded875c8-fe5e-4cc9-b973-2171b61fe982&displaylang=en#filelist
So much for the web, MSDN or Bing search on MSDN adding any value.