Some Help?
Yes, thats my problem. Windows Live mail works fine, but not in conjunction with Office. And no, I do not have Outlook installed.

Does MS need to make this so complicated?
I also have the same problem with Office Student and Windows 7 in Windows Live Mail. I found that if I try to email an open document from MS Word it will work on the third try and continue to work as long as I don't close WLM. Why it works on the 3rd try is a question. Perhaps because I have 3 mail accounts in WLM and the 3rd account is a windows live.com account. The live.com account is not the default account.
The IE8 "send link by email" and "send page by email" were also a problem as they were grayed out. I found this helpfull post in another forum:
In IE8 go to, Tools - Internet Options - Programs tab - Set Programs
button - last option, "Set program access and computer defaults"
(W7-specific) - select "Custom" and click the double down arrow at far
right - set all three to the first option, "Use my current . . . " and CHECK
all three checkboxes (well, only the middle one applies to Windows Live
Mail, but it can't hurt to take care of all three while you're doing this).
If you've set Windows Live Mail as your default email client in the normal
"Set your default programs", this will enable the "Send Page" and "Send
Link" features in IE8. There's something more specific in IE8 with that
"Set program access and computer defaults"