I can only repeat and confirm the problem is in your VC++ runtimes, that error message is very clear about this. And I can confirm that on a system that doesn't have pre-existing problems, this doesn't happen.
Yes, it's possible that having other versions of the runtimes, like the 2008, might cause problems to an installation of the 2005 version, there was an earlier version of the 2008 runtime which broke the 2005 version, so you might try removing that one in addition to the 2005 versions, then reinstalling the 2005 version only first, to see if this fix the problem.