I've never seen a program give that message before. It seems odd that it knows it thinks it needs an updated file, which is included within a specific Windows hotfix, yet it won't tell you what one you need. And it doesn't include it in the Cisco software installation program.
Are you running the latest service pack for your version of Windows? Maybe that's what it means - the Cisco software is only supported on a certain Windows version. The latest service pack for Windows XP is SP2 and the latest for Windows 2000 is SP4.