Well, the error here is nice and simple. As you can see, "kix32.exe" cannot be located.

See how you get on with this command:
Code:
kixcrypt -d -f c:\windows\kix32.exe -e "%KIXCRYPTDIR%\kix32.exe %KIXCRYPTDIR%\%KIXCRYPTFILE%" myscript.kix


Obviously you will need to change c:\windows... to wherever you have the executable installed.