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The issue is the game takes so long to load into memory the network connection times out. The preloader caches it first, so the timeout doesn't happen. Does mean you'll be loading ddo through that and not steam though.
Firewall springs to mind first if you've another box with win7 and it's working. I saw a bunch of Win8 issues if it were Win8 release (and people blaming skype), but seems to have died down since. Was also an issue with patching but supposedly since solved.
http://www.ddo.com/forums/showthread.php/429404-Game-will-not-install-Windows-8-1
Primarily: http://blogs.msdn.com/b/astebner/archive/2012/08/04/10336934.aspx
But there *are* plenty of Win 8.1 players, who managed to get .NET 1.1 on it and ddo working.
So it's a case of 'this doesn't work' while 'actually working if you ram stuff at it'.
Interesting.. I never even saw a warning when I installed it.