Harry Johnston [MVP] wrote:
>> This really doesn't have anything to do with Windows Update.
>
> The original problem was partly a Windows Update issue - the Silverlight
> WU
> package doesn't properly report errors that occur during installation.
>
> I've already reported this via Connect, along with the Silverlight problem
> which is probably what the OP was seeing (the install doesn't work if you
> have substituted drive letters defined).

Something tells me the Windows Live team has something to do with
Silverlight! <VBEG>