Error 25007. Error occurred initializing fusion. Setup could not load fusion with LoadLibraryShim().

If you received this error I was able to resolve this issue by doing the following recommendation.

Back up all relevant .NET files and removing .NET.  Then run the Windows update and Install the Microsoft .NET Framework 3.5 Service Pack 1 and .NET Framework 3.5 Family Update.

I have provided a link to Microsoft’s website find the correct version for your operating system and install it.
http://support.microsoft.com/kb/959209

It is important you install it with the Family Update because this will install the previous versions of .NET to your system correctly.

– Harry Caskey