If you can't install KB2434419, hide it.
You can download/install all Window Live Essentials 2011 applications manually via:
UTC/GMT is 14:52 on Wednesday, September 26, 2012
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If you still receives the error 0x80040609 when installing Essentials, please refer to this thread for the troubleshooting steps:
Error 0x80040609 when installing Windows Essentials