things you need to try updating the UE:
Microsoft Visual C++ 2005 Express Edition
Microsoft .net Framework (version 2.0, but 3.0 is backward compatible(3.0 also known as WinFX))
UE source code(Which I'm having trouble downloading)
Another idea may be to port the code over to C#, as its far easier to code than C++
if you go the C# route download, Microsoft Visual C# 2005 Express Edition.
Actually disregard downloading .net 2.0, it does it for you when you down load the IDE.
PLEASE NOTE: All Microsoft Express Editions are .net compliant and are free, forever. By making this software free Microsoft is taking advantage of the huge independent developer scene, ecspecially in the Independent games area, with the release of the Microsoft XNA platform which allows you to create games for Microsoft Windows (XP and VISTA) and also the Microsoft XBOX 360. The XNA platform is available only for the C# programming language. Which goes to show you just how powerful the C# language is.