Yes, I can confirm this happens on a fresh XP install.
I read some advice about installing the Visual C++ runtime files from
http://support.microsoft.com/kb/2019667 ... but neither the 2012 nor the 2010 download fixed it for me.
Let us know if you manage to get this working somehow - it may be that something needs to be added to the Quest Setup file.
Otherwise it might be time to upgrade your version of Windows! XP is pretty old now...