All you need to do is run Dredd.exe in compatibility mode for Windows Vista and then start Dredd.exe as Administrator.

To run in compatibility mode locate Dredd.exe in Steam\SteamApps\Common\DreddVsDeath\ folder, right click on Dredd.exe and click "Properties" then click the "Compatibility" tab and check the "Run in Compatibility mode" box and select Windows Vista from the drop down list.

Then right click and "Run as Administrator", should start up no problems.