Hi Rob,
Couple of things to try:
1. Run the existing Input Director uninstaller and do a full uninstall. if it asks to reboot, do so before moving to the next step.
2. Run the new v1.4 installer
If that didn't help, then it's possible that the vcredist (these are the latest Microsoft Libraries) didn't install properly. This would stop the Input Director windows service from installing (and showing you that message).
3. Use Windows Explorer to navigate to the Input Director install location (it's usually either c:\Program Files\Input Director or for 64bit Windows c:\Program Files (x86)\Input Director
4. Double-click on the vcredist file - you may need to right-click on it and choose "Run as Administrator"
Try running Input Director again. Let me know how it goes.
Regs,
Shane.