I dont know the issue is resolved or not as being an old thread, however try this (as was provided in earlier thread) to completeely remove manually -
So let us first remove it completely manually.
Pl follow these steps to uninstall -
From Start > type in search box
%programfiles%\Windows Live\Installer
For Windows 64 bit , Click Start > type in SearchBox %programfiles(x86)%\Windows Live\Installer
and press enter to open up that folder.
Double click on wlarp.exe and clcik on 'Remove one or more Windows Live programs'
and select everything and uninstall all following the instructions.
If you could uninstall everything without any error, Live Essentials is removed successfully. Restart and install again with your offline installer from http://g.live.com/1rewlive4-all/en/wlsetup-all.exe
Let me know if it doesn't work then we can try cmdline option to uninstall



I hope your Windows 7 is upto date with all its updates else update it.