Go to the command prompt (run from start menu).
msiexec /package {B775C26B-EAA8-4A11-ACBF-76E52DF6B805} /uninstall {342DCD5D-5946-453B-97AC-D53B7662EDF5}
After running the command
Choose repair and follow the steps in the wizard. Once you've done this, Windows Live Mail will be reverted back to the old version without the issues of the update.