Make sure you are not running WLM before applying the patch.
In addition, you can remove WLM with the included WLM uninstaller.
So maybe check whether windows live messenger/essentials is in your list.
Once found, RIGHT click on the word “Messenger” and choose “Properties”.
Here's a different solution that should work for all versions.
First, open the Control Panel and click on the Administrative Tools icon, then click on System Configuration.
To enable it again, just click "enable", or if you don't ever want it to pop up EVER then click "remove."Much easier for Vista - 1) click the down arrow at the top that indicates whether available, busy, etc.
But I had the option "Give me updates for Microsoft products and check for new optional Microsoft software when I update windows" turned on which I disabled now. As a result at 3AM after installing Movie Maker I got about 50 updates shoved down my throat and the PC rebooted itself.
So if you don't want Windows Update, turn it off after installing Movie Maker.
In the meantime, you could delete files in the folder (C:\Windows\Software Distribution\Download), for the update patches are located in it.
Since the update patch has been downloaded, if the issue persists, you may update first and uninstall the update patch.(control panel- It seems that Windows Live apps update can't be turned off from the Windows update which you have already done.