I don't mind the installs per se. I mostly wonder if there is any truth to the idea that the installs need to be made in order (I read that looking up this situation). If my first install of a 2005 C++ version is an updated one - does it matter if a latter version that is installed is not updated or patched etc?
No the order doesn't matter. Each version of the Visual C++ runtime stands on it's own and doesn't need any previous versions installed to work. Depending on the circumstances, the installer will either install a completely new version of the runtime beside any existing versions of the runtime, completely replace an old version of the runtime with a newer version, or do nothing.
For the 2005 and 2008 runtimes Microsoft released a number of different versions of the runtime for various reasons. Some of them added new features or changed behaviours, these are only ment to be used with applications and games that were compiled to use them. These get installed beside any existing runtimes as a side-by-side assembly. Others were critical bug fix releases. These are ment to completely replace older buggy runtimes. If the old buggy runtime isn't installed already, it will just install itself normally. If there's a newer runtime already installed that itself is a bug fix for the bug fix release being installed, then the installer will do nothing. Like I said, it's all very complicated.
Unfortunately, yes, installing a new version of the Visual C++ runtime can break existing applications. I've never heard of a game install causing this problem, and doing the installs in a different order won't fix the problem. You'll still end with the same set of runtime versions, the same exact files, installed regardless of what order you install them. Generally the only fix is either to uninstall the offending runtime (which may be hard to identify, and break the application that installed it) or wait for Microsoft to release fix. Microsoft SQL Express 2008 installed a version of the runtime that broke ATI's Catalyst installer, and Sony's Media Go installed a version that broke the monitoring application of my printer driver.
The hangs you mention don't sound like Visual C++ runtime issues, which generally cause crashes instead. Explorer in particular, like any standard Windows component, doesn't use any of the Visual C++ runtimes, it uses the system C++ runtime (a variant of the old Visual C++ 6 runtime.)