You need Asian text support installed if you're using Windows XP. You should install it anyway, so you have less problems all around. Go to Control Panel > Regional and Language Options > Languages > Enable everything under Supplemental language support. You'll probably need an XP disk as well so the files can be copied over.
[Edit] Oh crap, you use Vista. =<
Asian text support should be installed in Vista by default. And judging by the first screenshot, Glimmery15's computer can display the characters.
I take it he/she is trying to run the installer while not in japanese locale, thus the "japanese characters not showing".
Anyway, you should change the system locale at the control panel -> Clock, Language and Region -> Change Keyboard or other input methods -> Admin. Or simply look for an icon of the Earth + a clock and it's only entry, assuming you're in the default view of the control panel. If you don't want to change language settings to japanese, you can still run applocale:
http://www.shrinemaiden.org/forum/index.php/topic,25.0.html (Yeah, it says to downgrade but you can run it on Vista)
I can't remember if the installer automatically tries to run as admin, but you WILL need to do that for it to install. After that, if you want to install EoSD in the Program Files folder (or any other folder that requires admin access)... Run a command prompt as admin (from the start menu, right click command prompt and select "Run as administrator"), then browse to C:\Windows\AppPatch and run AppLoc.exe.
...If you don't really want to run the installer, all the files the game needs are in the CD's "kouma" folder. But you might need to use applocale or change to japanese settings to install the english patch.