You can download the Application Compatibility Toolkit (ACT) from the Microsoft download site HERE
ACT requires access to a SQL server as this is where it stores the processed collector information.
Once you have ACT Downloaded you can install it on a machine or Virtual Machine, whichever you may please. Run the “Application Compatibility Toolkit.msi”. Accept all defaults.
Launch the Application Compatibility Manager from Start -> All Programs -> Microsoft Application Compatibility Toolkit 5.5 -> Application Compatibility Manager. Follow these steps to configure ACT:
Leave default option “Enterprise Configuration”