Try this:

I HAVE FIXED IT!

I went into C:\Program Files (x86)\Common Files\ and deleted the BattlEye folder.

Next I disabled my Anti Virus and Firewall.
I couldn't turn off windows firewall so I added a rule for DayZ_BE.exe and allowed all connections.

Now I can start DayZ and BattlEye installs and the game works!

Hello PrinceOfArendelle,

Sorry to hear about your trouble.

I can see that you already tried some of the steps below, but please try out the following steps:

1. Start Steam and right click on DayZ in your game library (make sure that the game is not running).
2. Select the tab labeled "Local Files".
3. Click on the button labeled "Verify integrity of game cache...".
4. Restart your pc once the process is complete.

After this, if the problem is not solved, do the following.

1. Download and install Microsoft Visual C++ 2010 Redistributable Package: http://www.microsoft.com/en-us/search/result.aspx?q=vcredist%202010&form=DLC
2. Restart your pc.
3. Download and install Visual C++ Redistributable Packages for Visual Studio 2013: http://www.microsoft.com/en-us/search/result.aspx?q=vcredist%202013&form=DLC
4. Restart your pc.
5. Launch DayZ (run both Steam and DayZ as administrator if needed).

If this does not solve the problem, here's a suggestion that is a bit more drastic. Please be aware though; you might have to reinstall your other Steam games afterwards:

1. Move the entire "C:\Program Files (x86)\Steam\SteamApps" folder to your desktop. Your "SteamApps" folder should now be at the following location: "C:\Users\<username>\Desktop\SteamApps".
2. Move the "DayZ" folder out of the "C:\Users\<username>\Desktop\SteamApps\common" folder and subsequently delete the "DayZ" folder.
3. Uninstall Steam while making sure the "SteamApps" folder is still on your desktop.
4. Restart your pc.
5. Install a new version of Steam.
6. Go to the new "C:\Program Files (x86)\Steam\SteamApps" folder.
7. Move everything inside the old "SteamApps" folder on your desktop to the new "C:\Program Files (x86)\Steam\SteamApps" folder.
8. Install DayZ again.

Regards,
JStewart

I installed the Visual C++ 2013. Do I also need to install Visual C++ 2010?

Can you also explain what these Visual C++'s do?

Sorry, I'm just a bit cautious when downloading stuff I'm not familiar with.

Yes, both Visual C++ 2010 and Visual C++ 2013 are required for the game. For a more in depth explanation of Visual C++, there's some good information here: http://en.wikipedia.org/wiki/Visual_C%2B%2B

It is already part of the game files that are downloaded from Steam (available here: C:\Program Files (x86)\Steam\steamapps\common\DayZ\_CommonRedist\vcredist), but in some cases it seems like some players have to download and install the packages manually.

The person fixed it http://forums.dayzgame.com/index.php?/topic/221450-dayz-wont-launch-out-of-steam-libary/

issue was lack of admin privileges for steam.

Closing ticket then. Thanks for all the feedback on the issue.