Hey, i got myself on this issue since the new update of live messenger, i remembered playing with permissions because my windows wouldn't start and made the whole C:/ drive under my ownership and yeah solved this by getting a full control permission for the Local Services
1- open computer in start
2- right click on C: drive (or whatever drive windows's installed on)
3- properties <<Security tab>>
4- click (for special permissions or advanced settings click advanced)
5- look for LOCAL SERVICE and click change Permissions (you might not see it if not skip after 8
6- click on LOCAL SERVICE and click edit
7- check the full control box. click OK (you're back to the page of 6)
8- Check the box at thhe bottom Replace all Child object..... click ok and click continue on all prompts
6- Click on Add... in that window there's another advanced...click it
7- In the popup window on hte right side of common queries click <Find Now>
8- In the search results at the bottomthere should be LOCAL SERVICE click on it and press OK on top of the search results click OK in the small window
9- Click the first checkbox and choose OK
10- Check the box at thhe bottom Replace all Child object..... click ok and click continue on all prompts
This is also good for Windows Installer error 2203 and got this solution
http://social.msdn.microsoft.com/forums/en-US/winformssetup/thread/56007f34-8f61-4336-a6ab-9328cca0c78e this Wont get WLM to work reason why i went directly to the whole drive good luck all