Error 0x80040705, source: dotNet in Windows Live Essential Setup.

Error code given is:  0x80041161.

That's a completely different error from the one in your original post. Were you not seeing error 0x80040705 before? Or did that just come along for the ride from the old thread you posted in, which has since been deleted?

The error you're seeing is usually returned after an unsuccessful attempt to start the program. It means that the Windows Live ID Sign-in Assistant service isn't running. This service authenticates the user to the live.com servers, and is required in most circumstances.

A repair of the installation will often correct this. Type wlarp into the start search box and press Enter. Choose the repair option, and when it's finished reboot the computer. See whether Windows Live Mail will now launch properly. If it doesn't, follow these instructions: on versions of Windows 7 other than Home, with all Windows Live programs closed,

1. Press the Windows key, type services.msc and press Enter.
2. Locate the wlidsvc.exe service and double-click on it to open its properties sheet.
    Set Startup to Automatic (Delayed start). This will prevent the service from trying to start before Windows is completely loaded.
   Ensure that the Service status is Started. If it isn't, click Start.
3. Close the properties sheet and the Services snap-in.
4. Launch Windows Live Mail.