The installer is indicating that you need to enable the Windows Authentication and HTTP Redirection capabilities within Internet Information Services (IIS). This guide explains how to configure these options within Windows 7 (Vista should be similar, I think). The specific sections you will be targeting in the doc are "Enabling Windows Authentication" and "Enabling IIS Http Static Content" (the HTTP Redirection feature is found in the same location as HTTP Static Content).
Another important factor to consider is your version of Windows Vista. Windows Authentication is not supported in the "Home" versions of Vista and will therefore be unavailable to you, in which case TeamPulse will not be installable.
If you continue to have issues installing TeamPulse (or are unable to due to the Windows Authentication requirement) and are wanting to demo TeamPulse I encourage you to check out our online demo.
All the best,
the Telerik team