Sophos SafeGuard Disk Encryption (SDE): installation fails on Windows 2000 SP4

Issue
When installing SDE on a computer running Windows 2000, service pack 4 (SP4), installation fails with the following error:

error 1723
missing dll

Sophos product and version
Sophos SafeGuard Disk Encryption

Operating system
Windows 2000 SP4

What to do

1. Locate a copy of the msvcp60.dll. Try searching the computer for the file. If you cannot find it this way, copy the file from another computer that is running Windows 2000 SP4. If you still cannot obtain the file, re-install service pack 4.
2. Copy the msvcp60.dll file into the system32 folder.
3. Install SDE.