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The download including JRE only includes a 32 bit JRE.
This jre includes a copy of file msvcr71.dll (in folder datamodeler\jdk\jre\bin). However it seems that in some circumstances the system does not find this file.
There have been several message threads about this, both for SQL Developer and for Data Modeler.
For example, from https://forums.oracle.com/forums/thread.jspa?messageID=10624958 it appears that copying msvcr71.dll to the Windows\System32 folder may solve the problem,
or starting Data Modeler using the datamodeler.exe file in folder datamodeler/datamodeler/bin may help. (This brings up an additional command prompt window.)
Message Re: Oracle Data Modeler Installation guide may also be relevant.
To run Data Modeler in 64 bit mode, you will need to provide your own 64 bit JRE.
If you edit the file datamodeler64.conf (in folder datamodeler\datamodeler\bin) and remove the line starting with "Set JavaHome", next time you attempt to start 64-bit Data Modeler it should ask you for the location of the java.exe file in your 64 bit JRE.
There is now a forum specifically for Data Modeler issues: SQL Developer Data Modeler