Seen it before - although not for a few years as I use Trillian most of the time:
Here are the steps to walk you through the process.
1. Remove all older versions of Windows Live Services (if you have previously installed or attempted to install any Windows Live Services). Clear the entries your computer by following the steps below.
a. Click Start, click Run, type appwiz.cpl and then click OK.
b. In the list of currently installed programs, select any Windows Live (you may see more than one program with the Windows Live name) and then click Change / Remove.
c. If you are prompted to confirm, click Yes.
d. Do this until all Windows Live programs (except Windows Live OneCare) are uninstalled.
2. Restart your computer. This is important.
3. Once you have all the above dependencies installed, then download and install the appropriate software from the links below based on your language requirements. To perform this installation, follow these steps:
a. Visit this link: http://g.live.com/1rewlive3/en/wlsetup-a…
b. Save the file to your desktop
c. Then Select Run
Note: If you are prompted for confirmation to run the program, select Run
4. Once the install is complete, drag the WLSetup.exe file to the Recycle Bin (this file is no longer needed)
Hope that all still works.