As other people have already mentioned, it appears that you do not have Microsoft Visual Studio 2010 installed on your computer. Older versions of Python used Visual Studio 2008, but now the 2010 version is used. The 2010 version in particular is used to compile some of the code (not 2008, 2013, or any other version).
What is happening is that the installer is looking in your environmental variables for the Visual Studio 2010 tools. Note that Visual Studio 2008 or 2013 will NOT work, since the compiler is specifically looking for the 2010 version of the tools.
To see if you indeed have the 2010 version properly set up, right click on My Computer. Then go to "Properties". In the window that is opened, there should be an option for "Advanced system settings" on the left hand side. In the new window that opens, go to the "Advanced" tab, then click on the "Environmental Variables" Button. In the "System Variables", there should be a Variable called "VS100COMNTOOLS" that points to the Visual Studio 2010 Tools Directory. On my system, this is "C:Program Files (x86)Microsoft Visual Studio 10.0Common7Tools".
What one of the users suggested above, was a work around if you have a different version of Visual Studio. For instance, I have a 2013 version of Visual Studio, and hence I have a Variable called "VS120COMNTOOLS" which points to the 2013 toolset. Since the versions of Visual Studio share a lot of the same tools, you could probably compile Python with a newer or older version of Visual Studio, by simply adding a new variable called "VS100COMNTOOLS" which has the value of either %VS120COMNTOOLS%, or the directory that VS120COMNTOOLS points to. In this case, when Python trys to compile, it will think it is using the 2010 tools, but it will actually be using the 2013 tools on your system (or whichever version of Visual Studio you have). Of course doing this could cause problems, but my guess is that everything will work just fine. Just be aware that if you ever experience problems, it could be due to using the wrong tools.
The best method would be to install Visual Studio 2010 express (which is free I think).
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