Couldn’t install programs
Couldn’t install these programs: Photo Gallery and Movie Maker
It looks like another program is preventing the installer from working.
The reason behind this is Windows Live Essentials is trying to install a service (Windows Live ID Sign-in Assistant) however App-V is mucking something up in the process of it doing that and as such the installer fails.
The simple solution is to therefore disable the service vitalization feature in App-V!
The steps to take to do this are shown in the two screen shots below
Also you may find it useful to use the offline installer version of Windows Live Essentials (just saves the wait while it downloads over the Internet and also allows you to run the installer even if you have a proxy server).
The link to the offline installer can be found on this page on the Windows Live website – http://windows.microsoft.com/en-US/windows-live/essentials-install-offline-faq