Can't Decode command files!
I 'googled' this problem and is a rare issue that also happens with Alien Swarm Hammer.
Just as reference: I fixed the problem by deleting vbsp.exe, vrad.exe, vvis.exe and hammer_run_map_launcher.exe located in the common/portal 2/bin folder. Then right clicked on Portal2 Authoring Tools, clicked Properties, went to the Local Files tab and clicked Verify Integrity of Cache Files. This then re-downloaded the (corrupted?) files and it worked fine.
As far as I know it could just be the Hammer launcher that is the problem not the compile executables. However if this hasn't fixed the problem you could always use an external compiler. Then use the tutorials pasted on the same site to configure it properly.
Happy mapping,
Chicken Mobile
EDIT: It is confirmed that COMODO internet security has sandboxed the hammer executables, just disable sandboxing or change vbsp.exe etc. to trusted files and it should work.
In any case... I'm currently using COMODO internet security with a sand box security feature. After turning off the sand box my Hammer worked fine. Don't know if that would fix the problem for anyone else, but give it a try if your in the same situation as I was.
I was looking in the steam forums where I also read about this error and people also experienced it using 64 bit Windows XP. It could be a 64-bit COMODO issue? Then again, if it was the firewall it would make sense because since I re-downloaded the files the firewall would see these as different files and haven't been sand-boxed/been allowed this time through.
You revived a 6 month old thread. Congratulations.