I start an application and it says it requires xlive.dll

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That's the GfWL dll, if you don't have it something's gone wrong in installing. Reinstall whatever it is.

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After some research I found it is the "Games for Windows - LIVE" library, necessary to run most Microsoft's games. Which can be downloaded from: http://www.microsoft.com/downloads/details.aspx?displaylang=en&FamilyID=69b2c4db-0765-4980-9c1b-8f781ad50bd0

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