I had this same issue with arcmap 10.1.
firstly you need to check for GSW files in windows/syswow64. If found try running exe file to see the problem. In my case I was missing ltfil13n.dll, ltkrn13n.dll,ltefx13n.dll and Ltdis13n.dll files in windows/syswow64 and windows/system32 folders.
i just downloaded it and pasted those files to both folders and restarted .
this solved entire issues.