I had similar issues to the above. I have a Vista x64 Home Premium OS. I had non default install path to my "I" drive, as:
I:\DCS\Ka-50
I had a clean install of version 1.0 as I only yesterday bought it at the recently reduced pricing (Thanks Eagle D for that!)
And it created the following...
I:\DCS\Ka-50\bin\x86\stable
While the simulation shortcuts, and apparently the exe itself was looking for everything to be here -
I:\DCS\Ka-50\bin\stable
I COPY / PASTED
I:\DCS\Ka-50\bin\x86\stable
back to it's original place
I:\DCS\Ka-50\bin\stable
And everything started working fine for me.
Hope this helps others.