Error message when you try to run the Zune software: "Zune is not installed properly and must be reinstalled"

SYMPTOMS

When you try to run the Zune software, you receive the following error message:

Zune is not installed properly, and must be reinstalled.
Do you want to install the Zune from the Zune web site?

This problem occurs because one of the files that is required by the Zune software is missing or is damaged.

Reinstall the Zune software. To do this, select the Yes option on the Zune error message to start the download process, and then follow the instructions to complete installation of the software.

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Microsoft Support