Added after 7 minutes:
I downloaded vcredist_x86 from Microsoft and installed it. The "repair mode" showed up, so it seems something was already there. I repaired it. Problem persisted.
I ran vcredist_x86 again and uninstalled it, then installed it again. No gain.
I downloaded vcredist_x64 (it's Windows 7 64 bit on the machine at work). Installed and test - same problem still there.
Now I'm out of ideas.
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