I'd suggest trying out the steps that was given on this thread first.
windowslivehelp.com/thread.aspx?threadid...5e-a40d-048245542d63
Just make sure to read the whole thread as it contains other troubleshooting steps that may help you, the Cleanup Utility in specific.
Or just do the Cleanup Utility step:
1. Clear the entries in the Windows Installer database by using the Windows Installer Cleanup Utility:
a. Download and install the Windows Installer Cleanup Utility from this site:
download.microsoft.com/download/e/9/d/e9...48d5e1bd/msicuu2.exe
b. Start the Utility (Click on Start, click All Programs and then click Windows Install Clean Up).
c. On the list of Installed Products, select all instances that have (All Users) Windows Live on it. To make sure that you are removing the right programs, click on one item at a time then click on the Remove button until all entries with (All Users) Windows Live are deleted from the list.
d. Click "Exit."
e. Restart your computer to make sure that all changes made will take effect.
2. Perform Windows Update
a. Visit
windowsupdate.microsoft.com/
b. Verify that the computer requires updates, and then install the updates if necessary.
c. Restart the computer after you apply the updates.
3. Reinstall Windows Live Essentials at
download.live.com/
If after following the steps there and you still can't install, Download the full installer of Windows Live Essentials.
1. Visit
download.live.com/
2. Click on the Download button.
3. Please cancel the automatic download of wlsetup-web.exe. How you’ll cancel will vary between Internet browsers.
4. On the download instructions page, click on try again. This should dowload a different file, wlsetup-all.exe.
5. Wait for the download to finish. Then try to install again.