When Activating Getting this error: The Semaphore timeout period has expired

Hi all
I'm installing Komplete 7 into Windows 8.1 64 bit.
When I try to activate through the Service Center I get this error "The Semaphore timeout period has expired". I've attached a screen shot of the error. I contacted support and they suggested:
"This is a Windows error message usually given when there are problems with the network
or network adapter. The following Microsoft KB article has more information:
http://support.microsoft.com/en-us/kb/325487"

However I don't seem to be having any network issues. Uploads and downloads are just fine.
So I cleared the event log and did a reboot.
These two issues came up:
1) The application-specific permission settings do not grant Local Activation permission for the COM Server application with CLSID
{D63B10C5-BB46-4990-A94F-E40B9D520160}
and APPID
{9CA88EE3-ACB7-47C8-AFC4-AB702511C276}
to the user NT AUTHORITY\SYSTEM SID (S-1-5-18) from address LocalHost (Using LRPC) running in the application container Unavailable SID (Unavailable). This security permission can be modified using the Component Services administrative tool.

2)The driver \Driver\WudfRd failed to load for the device SWD\WPDBUSENUM\{66e89d2a-d7e4-11e4-9c22-806e6f6e6963}#0000000000100000.

Could either of these have caused this issue?
Thanks any help would be appreciated.