=======UPDATE Nov. 3, 2013=======
Here's another tip that may help all version of Windows. Some GFWL games may expect game files being installed on the same drive where Windows is installed.
For example, if your Windows Vista/7/8 is installed on the C drive, DR2 (and possibly other GFWL-based games) may expect the game build installed under the same drive letter.
Steam client as you may be aware allows users to manually select the drive (including externally attached drives) during the initial download/installation process. GFWL client or the game may not recognize this when the user deviates from the default drive letter when installed through Steam.
If you've already installed DR2 on another drive, try moving the entire DR2 folder following the steps below:Assumptions:
- Windows and Steam client is installed on C drive.
- DR2 installed on a different drive letter (assume D drive in this example)
1) Shut down Steam client (click "Exit" from the Steam menu in th eupper left corner).
2) Go to D:\Steam\SteamApps\ and delete "appmanifest_45740.acf"
3) Copy or Move the entire "Dead Rising 2" folder from "D:\Steam\SteamApps\common\" to "C:\Steam\SteamApps\common\"
4) Start Steam client and sign in with your account.
5) Double-click Dead Rising 2 from the Library menu.
6) Install game to its default location ("Install under C:\Steam")
7) Steam client ill recognize the build already exists at its designated location and will validate existing files instead of redownloading the game again.
8) Start game, sign into GFWL, and allow the game to download and install the latest DR2 Title Update (it'll require you to shutdown and restart Dead Rising 2).
I am cross-posting a forum post from RedX, one of our helpful community members from the Street Fighter forums, who neatly summarized
a step-by-step solution for this very issue few months back:
1) Open Programs and Features in Control Panel. This can be done by pressing Windows Key + W, then typing Programs and Features and hitting Return.
2) Look for "Microsoft Games for Windows Marketplace" and "Microsoft Games for Windows - LIVE Redistributable." Right click each one, one at a time and uninstall both of them.
2a) Restart Windows.
3) REINSTALL the Xbox.com version of GFWL. Why? I don't know other than it works. It has something to do with the new Xbox One, I imagine. Whatever the case, I was upset. But doing this fixed GFWL games on Windows 8. I currently play Dark Souls: Prepare to Die Edition and Street Fighter X Tekken on Windows 8 and both work fine with the Xbox version of GFWL.
Here ya go: http://www.xbox.com/en-US/live/pc/downloadclient
And if you aren't an en-US, just switch to your locale.
It's a Games for Windows Live client issue that primarily affects Windows 8 users but should be helpful for Windows 7 and earlier users as well.
In a nutshell, the above process ensures you're flushing out any old/incompatible GFWL file system before freshly installing the newest GFWL client.