(via meraTechPort, thanks Vasudev!)
So you rushed to download and install Windows Live Essentials 2011 Beta Refresh, only to get to 98% installed and fail, doh. The problem was that although the final version of WLE 2011 will support all major languages, the beta refresh only supports 9, and when your unsupported language was encountered:
the installer tries to find these additional language resources, they are unavailable and hence the error you are seeing. This error will occur in both the online web-version (wlsetup-web.exe) and the off-line version (wlsetup-all.exe).
Well today on the Windows Live Solution Center, James Elder posted that the issue has been fixed:
A fix for the "no internet connection" error you encountered has been released. Please retry and reply if you continue to see errors in your installation experience.
Root cause is that we added functionality to the Windows Live Installer to also install language resources matching the Windows OS language and mistakenly included references to languages that are not available until the final Windows Live release. Users installing on an OS language other than one of the nine languages released for Windows Live would have encountered this failure (English is just another language and not a unique cause of this error).
We apologize for the negative experience and inconvenience and appreciate you using Windows Live and for providing feedback. From this, we are updating our release tools to detect and avoid this problem in the future and investigating changing our error messages to be more helpful.
We posted earlier on how to change languages (through the control panel in “Windows Live Language Settings”), but that wouldn’t help if your install was wiped because of the language problem, as one of our commenters, phoyer, pointed out:
If you change the language after a failed installation the language setting will not be saved and without a (failed) installation the control panel option is not available.
For me it worked installing first only the bing toolbar (which does not have any language problem). Then I changed the language and installed the rest
Hopefully either the fix (or the Bing Toolbar trick, or both) will get you back up and running. Let us know in the comments if you’re continuing to have trouble.