I had the same error message, Greengills has your solution ^^
'I had the same problem with installation also.
What worked for me was to go to my installation folder (mine was C:\programs Files (x86)\Stardock Games\Elemental) and click on the Elemental.exe file to start it. Game started right up with no problems, got the update and everything has been running smoothly so far.'
The game was in my program files folder and just needed to be started via that route