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It sounds as though the attempted install of Visual Basic 2008 has gone bad.
See if there's any reference to it in Uninstall Programs. If not, I'd be inclined to go for a system restore to point before you tried to install VB 2008, and then see if you can install your Windows Live games.
If they do, you can then try and install VB 2008 again.
You might also have a problem with the Windows 7 Installer: Windows 7 fix for crashing Windows Installer errors - cannot install or uninstall MSI packages - Aaron Tiensivu's Blog