That's really odd -- looks like there is something messed up in your registry, this is not one I've ever seen before. It's trying to find the name of the "text culture" on your machine (e.g., English US, English UK, German, Chinese, whatever), and when it looks in the registry it dies. This is all part of the lower-level .NET class libraries, so it's a sign that something is well and truly hosed there; possibly a reinstall of .net would solve it, but given the error I honestly am not sure if that's something more global on windows. A reinstall of the OS would definitely solve it, of course, but that's overkill -- but when I search on google, the only similar errors I find for this are on Linux in WINE, so it's not something that's been discussed more widely (and that's particularly odd).
That's not the answer you were looking for, I'm certain. And, this is exactly the sort of "there's something mysterious wrong with my OS or .NET) issue that prompted our shift to Unity 3D for the upcoming AI War 4.0. The bad news is that I'm really not sure what to tell you -- reinstalling .NET might help or might not, and it will take an hour of unattended computer time and a reboot to try it. The good news is that we have the first beta of AI War 4.0 coming out today, and while it's not polished or 100% complete, it's at least functional and shouldn't have this issue because it doesn't use .NET. So that would be one way to escape from an issue like this without going through the pain of trying to figure out what is up with .NET/windows, at least -- I wish AI War 4.0 were wholly done so I could just point you to that for sure, but bear in mind there's another 2-3 weeks of baking that needs before it will be at the same quality/stability as the prior version of AI War.