I'll give it a shot.

When reinstalling Melodyne from the x3 Installer, should I just install 64 bit version?

Install the version of Melodyne that goes with the version of SONAR being installed. In my case, I have not installed a 32bit version of SONAR in some time.

Got it. I'm going to install 64bit version.

I am getting the same application error when reinstallation was reinstalling Rapture. "the application was unable to start correctly (0xc000007b).

 I clicked ok and continued install. Still no Melodyne in the region FX

I don't think I downloaded the latest library. I think I downloaded 2011. I am going to download 2013 and try the process again. 

Man, I just want to say I'm really sorry you're having so much trouble. The new ARA integration is so much smoother than the previous way or working. It can be a major hassle to troubleshoot this stuff from a distance. It kinda seems like a C++ runtime library problem (there are many, not just the latest) but honestly by this point I just hope someone will find you a magic answer.

It sounds like there are still unresolved issues with the MS libs on this machine. I would suggest calling Cakewalk tech support to sort this out.

I do thank you for all your help. I'll keep tryin and let you know what happens.