Are you installing it using a remote desktop (terminal service) connect? I know you'll get that error if you try and run CIPC from a remote desktop connection.
Whats the version of CIPC ? There is a known issue with version 2.x with the same error as below
Attempting to install/use IP Communicator on a system that has different names for the Playback (wave out) and Recording (wave in) devices.
In this particular system, opening the Sound and Multimedia control panel, and clicking the Audio tab, we saw the following:
Realtek HD Audio rear output
Realtek HD Front Green Jack
As these names are different, IP Communicator will not recognize these devices.
Workaround was to use a USB headset, which will be recognized by IP Communicator
Please rate, if this helps!!