I have Visual Studio 2010 with SP1 and Windows sdk 7.1. I also have VS2012 and Windows kit 8.
when i run Windows SDK 7.1 Command Prompt and run no
Windows SDK 7.1 Command Prompt
no
The following has worked for me (as of June 2014), as described in here.
Install free Visual Studio Express 2013 for Windows (not VS Express 2013 for Web)
npm install --msvs_version=2013
Otherwise, I have spent a lot of time installing old Microsoft packages and patches, and it wasn't helpful.