1. Backed up the game for reinstall.
2. Installed the following files that are found in the game folder that will be lost with step 4 C:\Program Files (x86)\Steam\SteamApps\common\Dishonored\Binaries\Redist (Note. These files are normally installed during the game’s install process, but normally the user is unaware that they did install do to the developer’s installer sequence)
a. vcredist_x64
b. vcredist_x86_2005sp1
c. vcredist_x86_2008sp1
3. Restarted the system.
4. Uninstalled the game.
5. Enabled cloud sync.
6. Restarted the system.
7. Restore the game. (I noticed that a file downloaded during this process through STEAM)
8. Restart the system.
9. Go to the game’s Win32 folder C:\Program Files (x86)\Steam\SteamApps\common\Dishonored\Binaries\Win32
10. Run compatibility mode. (Note. Make sure that only previous Windows versions are selected and nothing else during the selection process, also the reinstall of the game will default all settings in the compatibility mode tab if you made any prior attempts with this mode.)
11. (For me) The game finally opened using Windows 7 in windowed mode.
12. Go to the video option settings and changed them appropriately.
13. Disable compatibility mode.