When you have a side by side error, this means that you do not have the proper files installed that luac needs in order to work.
Try installing the visual studio runtimes from the installer I included in the current downloadable version of the lua compiler package here in the downloads section......reboot the computer after installing that runtime and then try to compile again. It should work flawlessly then.
Here is the link:
http://www.bully-board.com/index.php?action=downloads;sa=downfile&id=60There are two runtime installers packaged with this. One is for x32 and other for x64. Install both of them. Vcsetup.exe and vcredist_x86.exe are the runtime installers.
Let me know if this works for you.