I understand now, thank you. I checked my Path variable in the Environment Variables settings and "C:\Windows\system32" (note the lower-case "s") was listed there. I modified it to "C:\Windows\System32" as I wasn't sure if that made a difference or not. But now I'm getting a completely different error message when starting System Modeler (see below). I hate to get side-tracked with a completely different error, but this particular one will not even let me start the program for whatever reason.

Thank you for the response Fulvio, could you expand on that some more? I'm not quite sure what you are referring to.

Hello Otto, thank you for the reply. I tried using the default compiler selection (see below) but I still get the verification failed (No log file) error. I only have that or the "custom" option. Do I need to have any other Microsoft packages installed for this to work properly?

Regarding your note on the file path, a suggestion was made for me to try the full path including the file name "vsvars32.bat" so I tried that. As I suspected though, it also did not work. I changed it back to the standard "Tools" directory. Any other thoughts on this? A very odd problem.

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Thanks for the reply Johan. Yes I've tried using the default selection for Visual Studio but it fails to verify (screen shot attached). So I tried uninstalling VS 2013 and installed VS 2012 Pro. Same error. For whatever reason, the software can't seem to find the "vsvars32.bat" file even though I've confirmed it to be in the proper directory. Any other thoughts? Could this be an issue of 32 vs 64-bit compatibility?

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Thanks for the suggestion. I did try re-installing both System Modeler and Visual Studio 2012/2013 several times to no avail. System Modeler does detect that I have VS 2012 installed as it is an option in the drop-down menu (see my screen shot below). However, the verification of said compiler continues to fail for one reason or another. As a speculation on my part, I would say it has to do with something relating to how permissions are handled within Windows 8.1. However, the verification failure notice is still puzzling to me because what "log file" is it trying to locate? Do I need to create a log file in a specific directory because one was not properly created during installation? Just some additional thoughts on my end.