What was the problem when you failed to start? The code is one that looks like a Windows Update problem (you're not using WSUS right?) but I guess it could be a range of things.
I'd try the following:
1. Try removing the device from the live mesh desktop (i.e. via
mesh.com -> click on the device -> options -> remove device
from Live Mesh) and readding + installing
2. Try running the installer as follows: "LiveMesh.exe /repair" (although I assume that's what you meant by repair)
Barring the above, I would collect the installation logs and send them in for a bug to be opened by (from the front page):
1. Click Start
2. If you are using Vista, type Servicing* in the search bar. If you are using XP, click Search and then type Servicing*
3. In the search results you will see Servicing.log or Servicing(0000).log depending on where the installation failed.
To go directly to the file, the Servicing log is in INSTALLDIR\Setup\Servicing.log or %temp%\Live Mesh\Servicing[0000].log if Live Mesh was uninstalled/rolled back during a failed installation.
Then send these to lmprev@microsoft.com.
Good Luck!
