The only portion of Windows Live that I use is Windows Live Writer, but the Live installer really tries to encourage installing more of the “Live” applications. But that isn’t my biggest problem with the installer. Easily my number one gripe is that it doesn’t provide a way to select where you want the application installed.
I try to keep regular application files off my the C drive. I looked several times but I didn’t see any way to indicate where you wanted the files to be installed.