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Hi

I have the same problem, but unfortunately part  of your solution requires opening Windows Live Mail, which plainly is the problem - we can't!  I am running Windows Live 2012 on Windows 8.1, and have for some time now had to run the program as an Administrator for it to open properly each time.  However, it has now decided in the past few days not to open at all, sometimes eventually giving the same error message as above, but sometimes not.  The last update was a security update for IE, six days ago, and I think I did open Live the day after, but cannot be sure.  Please help - but without the idiotic advice to open WLM to backup!

PS. I have also run the repair function for WLE, which came us as successful.

Thanks

Lynne

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