Andrew,
The Error code you describe should only occur when you are trying to deploy a workspace that contains VIs and you do not have the LabVIEW Development System Installed. Is your workspace supposed to have some LabVIEW VIs? Do you have the LabVIEW development system installed, and what version? If it is installed, Can you run LabVIEW without any problems, and can you call VIs from TestStand if the Adapter Settings are configured to use the LabVIEW Development System?