Hi,
A couple of things to try:
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 reinstalling
2. Try running the installer as follows: "LiveMesh.exe /repair"
3. Dan from
this post found that the install had placed a LiveMesh.msi (MS Installer) file in AppData\Local\Microsoft\Live Mesh\Setup and that running that solved his problem. If you search your c:\Documents and Settings for "LiveMesh.msi" (don't forget to select to search hidden + system folders) you may find this file and that running it (or removing it) solves this issue.
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!