I got thesame problems as you did but did you formatted your hard disk
entirly?? because i had thesame problem and I formatted evrything but and the
new version of WLM or any registery keys were gone.
And I kept keeping thesame message if I tried to install the 9.0 beta
version. you cant login but at thesame moment you cant seem to uninstal WLM
I heard that one of the easyest ways to fix it was to entirly format your
hard disk and instal Windows again.
worked for me tough. only problem is that you will loose all your
settings/applications and programs. (*note you have to format the whole hard
disk not only the C:\ partion. I tried it, had to do it again.)
another solution I heard was to move all the files from C:\Program
Files\windows live (default folder) to D:\. worked for alot of people (seemed
not to work for me, maby works for the rest).
Another solution I heard was to enter Regedit and remove all the Windows
Live entries manual. I didnt do this because I was affraid to remove a entry
that could mess up your pc really bad. Dont know the registery entries, you
could probaly find them on the internet.
Excuse me for my bad english. still learning it.
good luck, Mr.Unknown