This is an excerpt from this Microsoft Answers post.
Windows Live Media have these four dll's linked to them;
Manually register the dependent .dll files for this error and see if this resolves the issue.
To do this, click the Start ORB / in the Search Line Type
Command / Right Click on the Command Prompt from the programs list / Select
RUN AS ADMINISTRATOR.
In the command prompt type
regsvr32 /s ntdll.dll and hit enter,
regsvr32 /s wow64.dll and hit enter,
regsvr32 /s wow64win.dll and hit enter,
regsvr32 /s wow64cpu.dll and hit enter.
You've not answered whether Windows works normally in Safe Mode. It is recommended you try as @pincopallino suggests to run
while in Safe Mode. After that, try uninstalling Windows Live Essentials and reinstall it.
If you are still having trouble after that, you may want to do a factory recovery to start from a fresh install of Windows.