I'll add that something seems kind of broken on your computer:
PATH:
t Shared\Windows Live;C:\Windows\system32;C:\Windows;C:\Windows\System32\Wbem;C:\Windows\System32\WindowsPowerShell\v1.0\;C:\Program Files\Intel\WiFi\bin\;C:\Program Files\Common Files\Intel\WirelessCommon\;C:\Program Files (x86)\Windows Live\Shared;C:\Program Files (x86)\Common Files\Roxio Shared\DLLShared\;C:\Program Files (x86)\Common Files\Roxio Shared\OEM\DLLShared\;C:\Program Files (x86)\Common Files\Roxio Shared\OEM\DLLShared\;C:\Program Files (x86)\Common Files\Roxio Shared\OEM\12.0\DLLShared\;C:\Program Files (x86)\Roxio\OEM\AudioCore\;C:\strawberry\c\bin\gnuplot\bin;C:\Python27;C:\Python27\DLLs;C:\Python27\Scripts;C:\Python27\Lib\site-packages\vtk;C:\Python27\gnuplot\binary;C:\Python27\Lib\site-packages\osgeo;C:\Program Files (x86)\pythonxy\SciTE-3.3.2-3;C:\Program Files (x86)\pythonxy\console;C:\Program Files (x86)\pythonxy\swig;C:\Program Files (x86)\pythonxy\gettext\bin;C:\Program Files (x86)\Skype\Phone\;C:\MinGW32-xy\bin
Broken thing #1: The first item in the path is "t Shared\Windows Live" which is not a valid path.
Broken thing #2: Demeter's installer puts three things in your path, all of which start with "C:\strawberry". None of them are in your path variable.
I don't know how you got to this place and I don't know the best way to fix it, but it is certainly a situation that Demeter is not prepared for. Unless you explicitly fix something like how Matt suggested, there is a 0% chance that anything else you try will get Demeter working on your computer.
I'd also like to point out that Demeter works just fine on Windows 7. I test every installer on Windows 7 machines. The problem here is that Demeter won't starting on *your* computer.