I have this exact same problem, the game was working perfectly until now,
HOWEVER, Raging's fix did not work for me, when I try to install the directX it says there's already a newer version installed and therefore it doesn't need to install anything...
EDIT: these aren the Xinput dll files in my system32 folder
the game is the Steam version, I also tried to validate the files and that didn't work either
EDIT2: I have also tried the patch from this post
http://www.frictionalgames.com/forum/thread-22842.html and the error it returns is:
translation of the second line: "is not designed to run on Windows or has an error"
and there certainly is a XINPUT1_3.dll in that folder! so maybe the problem all along hasn't been the one in the system32 folder?
EDIT 3: I FIXED IT!!
I replaced the files xinput1_3.dll, msvcp100.dll and msvcr100.dll of the SteamApps/common/MachineforPigs with the ones of the exact same name from Windows/system32 folder. The game is running again!!