I can't paste the entire log since it is too big but here is the bottom part of it. The Windows Live ID Sign-in Assistant installation is failing.
Action start 23:04:32: RemoveExistingProducts.
MSI (s) (A0:4C) [23:04:32:290]: Doing action: InstallInitialize
Action ended 23:04:32: RemoveExistingProducts. Return value 1.
MSI (c) (44:28) [23:04:32:290]: Creating MSIHANDLE (95) of type 790531 for thread 1576
MSI (c) (44:28) [23:04:32:290]: Closing MSIHANDLE (95) of type 790531 for thread 1576
MSI (s) (A0:4C) [23:04:32:292]: Machine policy value 'AlwaysInstallElevated' is 0
MSI (s) (A0:4C) [23:04:32:292]: User policy value 'AlwaysInstallElevated' is 0
MSI (s) (A0:4C) [23:04:32:292]: BeginTransaction: Locking Server
MSI (s) (A0:4C) [23:04:32:293]: SRSetRestorePoint skipped for this transaction.
MSI (s) (A0:4C) [23:04:32:293]: Server not locked: locking for product {9B48B0AC-C813-4174-9042-476A887592C7}
Action start 23:04:32: InstallInitialize.
MSI (s) (A0:4C) [23:04:32:372]: Doing action: CASameOrNewerVersionInstalled
Action ended 23:04:32: InstallInitialize. Return value 1.
MSI (c) (44:28) [23:04:32:372]: Creating MSIHANDLE (96) of type 790531 for thread 1576
MSI (c) (44:28) [23:04:32:372]: Closing MSIHANDLE (96) of type 790531 for thread 1576
MSI (s) (A0:4C) [23:04:32:373]: Note: 1: 2235 2: 3: ExtendedType 4: SELECT Action,Type,Source,Target, NULL, ExtendedType FROM CustomAction WHERE Action = 'CASameOrNewerVersionInstalled'
Action start 23:04:32: CASameOrNewerVersionInstalled.
MSI (s) (A0:4C) [23:04:32:373]: Product: Windows Live ID Sign-in Assistant -- Newer version already installed.
MSI (c) (44:28) [23:04:32:373]: Creating MSIHANDLE (97) of type 790531 for thread 1576
MSI (c) (44:28) [23:04:32:373]: Closing MSIHANDLE (97) of type 790531 for thread 1576
Newer version already installed.
MSI (s) (A0:4C) [23:04:32:387]: Machine policy value 'DisableRollback' is 0
MSI (s) (A0:4C) [23:04:32:387]: Note: 1: 1402 2: HKEY_LOCAL_MACHINE\Software\Microsoft\Windows\CurrentVersion\Installer\Rollback\Scripts 3: 2
Action ended 23:04:32: CASameOrNewerVersionInstalled. Return value 3.
MSI (s) (A0:4C) [23:04:32:388]: Note: 1: 1402 2: HKEY_LOCAL_MACHINE\Software\Microsoft\Windows\CurrentVersion\Installer\Rollback\Scripts 3: 2
MSI (c) (44:28) [23:04:32:388]: Creating MSIHANDLE (98) of type 790531 for thread 1576
MSI (c) (44:28) [23:04:32:388]: Closing MSIHANDLE (98) of type 790531 for thread 1576
MSI (s) (A0:4C) [23:04:32:388]: No System Restore sequence number for this installation.
MSI (s) (A0:4C) [23:04:32:388]: Unlocking Server
MSI (c) (44:28) [23:04:32:388]: Creating MSIHANDLE (99) of type 790531 for thread 1576
MSI (c) (44:28) [23:04:32:388]: Closing MSIHANDLE (99) of type 790531 for thread 1576
Action ended 23:04:32: INSTALL. Return value 3.
Property(S): Manufacturer = Microsoft Corporation
Property(S): ProductCode = {9B48B0AC-C813-4174-9042-476A887592C7}
Property(S): ProductLanguage = 1033
Property(S): ProductName = Windows Live ID Sign-in Assistant
Property(S): ProductVersion = 6.500.3165.0
Property(S): UpgradeCode = {31BB3B1C-5A3D-4E68-82A1-3C166F03C379}
Property(S): MSIRESTARTMANAGERCONTROL = Disable
Property(S): INSTALLLEVEL = 3
Property(S): ALLUSERS = 1
Property(S): SQMOPTIN.1312FADD_90E2_487F_B4BC_5B3F1469FB3C = 0
Property(S): SMARTCARD.1312FADD_90E2_487F_B4BC_5B3F1469FB3C = 0
Property(S): SMARTCARD.D7E3D3D4_C059_4F60_8B26_AED871BD74F7 = 0
Property(S): LCID.1312FADD_90E2_487F_B4BC_5B3F1469FB3C = 1033
Property(S): LAB.1312FADD_90E2_487F_B4BC_5B3F1469FB3C = notchange
Property(S): LAB32.D7E3D3D4_C059_4F60_8B26_AED871BD74F7 = notchange
Property(S): EULAREFRESHED = 0
Property(S): ARPPRODUCTICON = prodicon.ico
Property(S): DefaultUIFont = WixUI_Font_Normal
Property(S): WixUI_Mode = Minimal
Property(S): ARPNOMODIFY = 1
Property(S): WixUI_VerifyReadyDlg_BackCustom = CustomizeDlg
Property(S): WixUI_VerifyReadyDlg_BackChange = CustomizeDlg
Property(S): WixUI_VerifyReadyDlg_BackRepair = MaintenanceTypeDlg
Property(S): WixUI_VerifyReadyDlg_BackRemove = MaintenanceTypeDlg
Property(S): WixUI_VerifyReadyDlg_BackTypical = SetupTypeDlg
Property(S): WixUI_VerifyReadyDlg_BackFeatureTree = CustomizeDlg
Property(S): WixUI_VerifyReadyDlg_BackComplete = CustomizeDlg
Property(S): WixUI_MaintenanceWelcomeDlg_Next = MaintenanceTypeDlg
Property(S): WixUI_MaintenanceTypeDlg_Back = MaintenanceWelcomeDlg
Property(S): WixUI_MaintenanceTypeDlg_Change = CustomizeDlg
Property(S): WixUI_MaintenanceTypeDlg_Repair = VerifyReadyDlg
Property(S): WixUI_MaintenanceTypeDlg_Remove = VerifyReadyDlg
Property(S): ErrorDialog = ErrorDlg
Property(S): WixUIRMOption = UseRM
Property(S): SecureCustomProperties = SAMEORNEWER_WINLIVELOGIN;WINLIVELOGIN_UPGRADE
Property(S): SQMOPTINREG = #0
Property(S): DIR_WINLIVE_32 = C:\Program Files (x86)\Common Files\Microsoft Shared\Windows Live\
Property(S): DIR_INT = C:\ProgramData\Microsoft\IdentityCRL\int\
Property(S): DIR_DEVD = C:\ProgramData\Microsoft\IdentityCRL\dev-d\
Property(S): DIR_DEVE = C:\ProgramData\Microsoft\IdentityCRL\dev-e\
Property(S): DIR_WINLIVE = C:\Program Files\Common Files\Microsoft Shared\Windows Live\
Property(S): DIR_MSFT_SHARED_32 = C:\Program Files (x86)\Common Files\Microsoft Shared\
Property(S): CommonFilesFolder = C:\Program Files (x86)\Common Files\
Property(S): DIR_PPCRL_32 = Z:\
Property(S): DIR_SDKCOMPONENTS_32 = Z:\
Property(S): i386forAmd64 = Z:\
Property(S): TARGETDIR = Z:\
Property(S): DIR_IDENTITYCRL = C:\ProgramData\Microsoft\IdentityCRL\
Property(S): DIR_MICROSOFT = C:\ProgramData\Microsoft\
Property(S): CommonAppDataFolder = C:\ProgramData\
Property(S): DIR_PPCRL = Z:\
Property(S): DIR_MSFT_SHARED = C:\Program Files\Common Files\Microsoft Shared\
Property(S): CommonFiles64Folder = C:\Program Files\Common Files\
Property(S): DIR_SDKCOMPONENTS = Z:\
Property(S): SourceDir = C:\Windows\SoftwareDistribution\Download\68eeb13ef45576ab2386c647f4410b25\img\
Property(S): SAMEORNEWER_WINLIVELOGIN = {1ACC8FFB-9D84-4C05-A4DE-D28A9BC91698}
Property(S): SystemFolder.D7E3D3D4_C059_4F60_8B26_AED871BD74F7 = C:\Windows\SysWOW64\
Property(S): DIR_WLIDSSP_32.D7E3D3D4_C059_4F60_8B26_AED871BD74F7 = C:\Program Files (x86)\Common Files\Microsoft Shared\Windows Live\
Property(S): i386forAmd64.D7E3D3D4_C059_4F60_8B26_AED871BD74F7 = C:\Program Files (x86)\Common Files\Microsoft Shared\Windows Live\
Property(S): DIR_SDKCOMPONENTS_32.D7E3D3D4_C059_4F60_8B26_AED871BD74F7 = C:\Program Files (x86)\Common Files\Microsoft Shared\Windows Live\
Property(S): DIR_PPCRL_32.D7E3D3D4_C059_4F60_8B26_AED871BD74F7 = C:\Program Files (x86)\Common Files\Microsoft Shared\Windows Live\
Property(S): DIR_WINLIVE_32.D7E3D3D4_C059_4F60_8B26_AED871BD74F7 = C:\Program Files (x86)\Common Files\Microsoft Shared\Windows Live\
Property(S): DIR_MSFT_SHARED_32.D7E3D3D4_C059_4F60_8B26_AED871BD74F7 = C:\Program Files (x86)\Common Files\Microsoft Shared\
Property(S): DIR_WLIDRES_32.D7E3D3D4_C059_4F60_8B26_AED871BD74F7 = C:\Program Files (x86)\Common Files\Microsoft Shared\Windows Live\
Property(S): DIR_WLIDSSP_32_2.D7E3D3D4_C059_4F60_8B26_AED871BD74F7 = C:\Program Files (x86)\Common Files\Microsoft Shared\Windows Live\
Property(S): CommonFilesFolder.D7E3D3D4_C059_4F60_8B26_AED871BD74F7 = C:\Program Files (x86)\Common Files\
Property(S): System64Folder.1312FADD_90E2_487F_B4BC_5B3F1469FB3C = C:\Windows\system32\
Property(S): DIR_WLIDSSP.1312FADD_90E2_487F_B4BC_5B3F1469FB3C = C:\Program Files\Common Files\Microsoft Shared\Windows Live\
Property(S): DIR_IDENTITYCRL.1312FADD_90E2_487F_B4BC_5B3F1469FB3C = C:\ProgramData\Microsoft\IdentityCRL\
Property(S): DIR_PRODUCTION.1312FADD_90E2_487F_B4BC_5B3F1469FB3C = C:\ProgramData\Microsoft\IdentityCRL\production\
Property(S): DIR_MICROSOFT.1312FADD_90E2_487F_B4BC_5B3F1469FB3C = C:\ProgramData\Microsoft\
Property(S): CommonAppDataFolder.1312FADD_90E2_487F_B4BC_5B3F1469FB3C = C:\ProgramData\
Property(S): DIR_PPCRL_1.1312FADD_90E2_487F_B4BC_5B3F1469FB3C = C:\Program Files\Common Files\Microsoft Shared\Windows Live\
Property(S): DIR_SDKCOMPONENTS_1.1312FADD_90E2_487F_B4BC_5B3F1469FB3C = C:\Program Files\Common Files\Microsoft Shared\Windows Live\
Property(S): DIR_SDKCOMPONENTS.1312FADD_90E2_487F_B4BC_5B3F1469FB3C = C:\Program Files\Common Files\Microsoft Shared\Windows Live\
Property(S): DIR_PPCRL.1312FADD_90E2_487F_B4BC_5B3F1469FB3C = C:\Program Files\Common Files\Microsoft Shared\Windows Live\
Property(S): DIR_WINLIVE.1312FADD_90E2_487F_B4BC_5B3F1469FB3C = C:\Program Files\Common Files\Microsoft Shared\Windows Live\
Property(S): DIR_MSFT_SHARED.1312FADD_90E2_487F_B4BC_5B3F1469FB3C = C:\Program Files\Common Files\Microsoft Shared\
Property(S): DIR_WLIDRES.1312FADD_90E2_487F_B4BC_5B3F1469FB3C = C:\Program Files\Common Files\Microsoft Shared\Windows Live\
Property(S): DIR_WLIDSSP2.1312FADD_90E2_487F_B4BC_5B3F1469FB3C = C:\Program Files\Common Files\Microsoft Shared\Windows Live\
Property(S): DIR_SQM.1312FADD_90E2_487F_B4BC_5B3F1469FB3C = C:\Program Files\Common Files\Microsoft Shared\Windows Live\
Property(S): CommonFiles64Folder.1312FADD_90E2_487F_B4BC_5B3F1469FB3C = C:\Program Files\Common Files\
Property(S): ProgramMenuFolder.1312FADD_90E2_487F_B4BC_5B3F1469FB3C = C:\ProgramData\Microsoft\Windows\Start Menu\Programs\
Property(S): MsiLogFileLocation = C:\Windows\TEMP\MSIa16ef.LOG
Property(S): PackageCode = {AFAEFABE-FB0E-48F0-8262-9D5F91A9EEF1}
Property(S): ProductState = -1
Property(S): PackagecodeChanging = 1
Property(S): REBOOT = REALLYSUPPRESS
Property(S): CURRENTDIRECTORY = C:\Windows\system32
Property(S): CLIENTUILEVEL = 3
Property(S): MSICLIENTUSESEXTERNALUI = 1
Property(S): CLIENTPROCESSID = 3652
Property(S): VersionDatabase = 200
Property(S): VersionMsi = 5.00
Property(S): VersionNT = 601
Property(S): VersionNT64 = 601
Property(S): WindowsBuild = 7601
Property(S): ServicePackLevel = 1
Property(S): ServicePackLevelMinor = 0
Property(S): MsiNTProductType = 1
Property(S): WindowsFolder = C:\Windows\
Property(S): WindowsVolume = C:\
Property(S): System64Folder = C:\Windows\system32\
Property(S): SystemFolder = C:\Windows\SysWOW64\
Property(S): RemoteAdminTS = 1
Property(S): TempFolder = C:\Windows\TEMP\
Property(S): ProgramFilesFolder = C:\Program Files (x86)\
Property(S): ProgramFiles64Folder = C:\Program Files\
Property(S): AppDataFolder = C:\Windows\system32\config\systemprofile\AppData\Roaming\
Property(S): FavoritesFolder = C:\Windows\system32\config\systemprofile\Favorites\
Property(S): NetHoodFolder = C:\Windows\system32\config\systemprofile\AppData\Roaming\Microsoft\Windows\Network Shortcuts\
Property(S): PersonalFolder = C:\Windows\system32\config\systemprofile\Documents\
Property(S): PrintHoodFolder = C:\Windows\system32\config\systemprofile\AppData\Roaming\Microsoft\Windows\Printer Shortcuts\
Property(S): RecentFolder = C:\Windows\system32\config\systemprofile\AppData\Roaming\Microsoft\Windows\Recent\
Property(S): SendToFolder = C:\Windows\system32\config\systemprofile\AppData\Roaming\Microsoft\Windows\SendTo\
Property(S): TemplateFolder = C:\ProgramData\Microsoft\Windows\Templates\
Property(S): LocalAppDataFolder = C:\Windows\system32\config\systemprofile\AppData\Local\
Property(S): MyPicturesFolder = C:\Windows\system32\config\systemprofile\Pictures\
Property(S): AdminToolsFolder = C:\ProgramData\Microsoft\Windows\Start Menu\Programs\Administrative Tools\
Property(S): StartupFolder = C:\ProgramData\Microsoft\Windows\Start Menu\Programs\Startup\
Property(S): ProgramMenuFolder = C:\ProgramData\Microsoft\Windows\Start Menu\Programs\
Property(S): StartMenuFolder = C:\ProgramData\Microsoft\Windows\Start Menu\
Property(S): DesktopFolder = C:\Users\Public\Desktop\
Property(S): FontsFolder = C:\Windows\Fonts\
Property(S): GPTSupport = 1
Property(S): OLEAdvtSupport = 1
Property(S): ShellAdvtSupport = 1
Property(S): MsiAMD64 = 6
Property(S): Msix64 = 6
Property(S): Intel = 6
Property(S): PhysicalMemory = 8191
Property(S): VirtualMemory = 13116
Property(S): AdminUser = 1
Property(S): MsiTrueAdminUser = 1
Property(S): LogonUser = SYSTEM
Property(S): UserSID = S-1-5-18
Property(S): UserLanguageID = 1033
Property(S): ComputerName = A688-PC
Property(S): SystemLanguageID = 1033
Property(S): ScreenX = 1024
Property(S): ScreenY = 768
Property(S): CaptionHeight = 22
Property(S): BorderTop = 1
Property(S): BorderSide = 1
Property(S): TextHeight = 16
Property(S): TextInternalLeading = 3
Property(S): ColorBits = 32
Property(S): TTCSupport = 1
Property(S): Time = 23:04:32
Property(S): Date = 3/13/2012
Property(S): MsiNetAssemblySupport = 4.0.30319.1
Property(S): MsiWin32AssemblySupport = 6.1.7601.17514
Property(S): RedirectedDllSupport = 2
Property(S): MsiRunningElevated = 1
Property(S): Privileged = 1
Property(S): USERNAME = a688
Property(S): DATABASE = C:\Windows\Installer\1338218.msi
Property(S): OriginalDatabase = C:\Windows\SoftwareDistribution\Download\68eeb13ef45576ab2386c647f4410b25\img\wllogin_64.msi
Property(S): UILevel = 2
Property(S): ACTION = INSTALL
Property(S): ROOTDRIVE = Z:\
Property(S): CostingComplete = 1
Property(S): SOURCEDIR = C:\Windows\SoftwareDistribution\Download\68eeb13ef45576ab2386c647f4410b25\img\
Property(S): SourcedirProduct = {9B48B0AC-C813-4174-9042-476A887592C7}
Property(S): OutOfDiskSpace = 0
Property(S): OutOfNoRbDiskSpace = 0
Property(S): PrimaryVolumeSpaceAvailable = 0
Property(S): PrimaryVolumeSpaceRequired = 0
Property(S): PrimaryVolumeSpaceRemaining = 0
=== Logging stopped: 3/13/2012 23:04:32 ===
MSI (s) (A0:4C) [23:04:32:735]: Note: 1: 1708
MSI (s) (A0:4C) [23:04:32:736]: Product: Windows Live ID Sign-in Assistant -- Installation failed.
MSI (s) (A0:4C) [23:04:32:741]: Windows Installer installed the product. Product Name: Windows Live ID Sign-in Assistant. Product Version: 6.500.3165.0. Product Language: 1033. Manufacturer: Microsoft Corporation. Installation success or error status: 1603.
MSI (s) (A0:4C) [23:04:32:744]: Deferring clean up of packages/files, if any exist
MSI (s) (A0:4C) [23:04:32:744]: MainEngineThread is returning 1603
MSI (s) (A0:90) [23:04:32:746]: No System Restore sequence number for this installation.
MSI (c) (44:28) [23:04:32:761]: Creating MSIHANDLE (100) of type 790531 for thread 1576
MSI (c) (44:28) [23:04:32:761]: Closing MSIHANDLE (100) of type 790531 for thread 1576
MSI (s) (A0:90) [23:04:32:761]: User policy value 'DisableRollback' is 0
MSI (s) (A0:90) [23:04:32:761]: Machine policy value 'DisableRollback' is 0
MSI (s) (A0:90) [23:04:32:761]: Incrementing counter to disable shutdown. Counter after increment: 0
MSI (s) (A0:90) [23:04:32:761]: Note: 1: 1402 2: HKEY_LOCAL_MACHINE\Software\Microsoft\Windows\CurrentVersion\Installer\Rollback\Scripts 3: 2
MSI (s) (A0:90) [23:04:32:761]: Note: 1: 1402 2: HKEY_LOCAL_MACHINE\Software\Microsoft\Windows\CurrentVersion\Installer\Rollback\Scripts 3: 2
MSI (s) (A0:90) [23:04:32:763]: Decrementing counter to disable shutdown. If counter >= 0, shutdown will be denied. Counter after decrement: -1
MSI (s) (A0:90) [23:04:32:763]: Restoring environment variables
MSI (c) (44:28) [23:04:32:762]: Creating MSIHANDLE (101) of type 790531 for thread 1576
MSI (c) (44:28) [23:04:32:762]: Closing MSIHANDLE (101) of type 790531 for thread 1576
MSI (c) (44:30) [23:04:32:794]: Decrementing counter to disable shutdown. If counter >= 0, shutdown will be denied. Counter after decrement: -1
MSI (c) (44:30) [23:04:32:794]: MainEngineThread is returning 1603
=== Verbose logging stopped: 3/13/2012 23:04:32 ===