From here
http://sysbadmin.wordpress.com/2013/01/19/how-to-install-google-drive-on-server-2008-r2/
Running Microsoft Server 2008 R2 as your home lab but also use it as your desktop? Trying to install Google Drive and getting the following error?
The installer encountered error 1603: Fatal error during installation.
Or
The application has failed to start because its side-by-side configuration is incorrect
It’s because it as a dependency it doesn’t tell you about, you need Microsoft Visual C++ 2008 SP1 Redistributable Package (x64) to install it and thenMicrosoft Visual C++ 2008 SP1 Redistributable Package (x86) to actually run it! As soon as you’ve installed it you can run the usual googledrivesync.exe installaer and that’s it!
Get the downloads (around 4Mb) from Microsoft below:
Michael Ellerbeck 
hi my friend,
very good your tutorial. Solved my problem.
Best Regards,
Everson – Sao Paulo – Brazil
Thank you so much. I have solved this problem,
Works, thx man \o/