First thing you need is Application Verifier. This utility allows you to customize shims for applications. Once it's installed, go "File > Add Application" and add your application.
Under "Test" expand out compatibility, check "HighVersionLie" then right-click on it and select "Properties"
The system is a domain controller and the operating system is Windows Server 2008, Windows Server 2003, or Windows 2000 Server.
The operating system is Windows Server 2008, Windows Server 2003, or Windows 2000 Server.
Note that a server that is also a domain controller is reported as VER_NT_DOMAIN_CONTROLLER, not VER_NT_SERVER.
The operating system is Windows Vista, Windows XP Professional, Windows XP Home Edition, or Windows 2000 Professional.
Specifying a value of 1 in Product Type simulates that this is a consumer/workstation OS and the Oculus Rift software now installs without issue.