I don't know what that error code means but if you can submit a bug and include the install logs it would be very helpful in diagnosing and finding a solution to this installation issue. See this post on how to submit a bug report -
http://social.microsoft.com/Forums/en/LiveMesh/thread/d52b350a-f3e0-41c6-8e78-d6378e566b9e Please ignore the section on how to collect Live Mesh logs and use the following instructions instead:
1) Click Start 2) In the search bar (Vista) or Click Search (XP/2003) type Servicing* 3) In the search results you will see Servicing.log or Servicing(0000).log depending on where the installation failed. **NOTE** To directly go 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.
Jim - MVP Windows Live - Forum Moderator - Live One Care - Live Mesh