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C:\Program Files (x86)\Steam\steamapps\common\wallpaper_engine\_CommonRedist\vcredist\2013\vcredist_x86.exe
C:\Program Files (x86)\Steam\steamapps\common\wallpaper_engine\_CommonRedist\vcredist\2013\vcredist_x64.exe
And try launching it directly with wallpaper32.exe (possibly as admin).
Also since you mention Afterburner, you should exclude wallpaper32.exe in RivaTuner. RivaTuner injects code that makes things unstable.
So in total, you need to run those 3 .exe files manually.
Does the 32-bit version appear in the task bar? Also make sure to verify the installation over Steam because missing files can also lead to what you are describing.