Your processor is of course supported by Microsoft VC++, there is something preventing the installation of the updated VC++ 2005 runtime. It could be that, Microsoft Update is not automatic, and that other important updates are missing. I assume you have downloaded Shipsim Extremes from VStep's site.
I think that you should unregister, uninstall and reinstall the game, preferably in its default location, as apparently there is something wrong or missing in the game paths.
Luc