You need to install the MSVC C compiler that was used to compile your Perl, and have it available in the path.

Note that you cannot use "any" C compiler without some fiddling. I recommend using the exact version that was used to compile your Perl executable, that is likely MSVC 6. There are two complete packages of Perl with C compilers for Windows, http://stennie.org/camelpack/ and Vanilla Perl - uninstalling your current Perl installation and installing one of these two might also be a solution to your problem.