Hi,
According to Microsoft description of Windows Live essential system requirements, Windows 10 was not in the list, even Windows 8.1.
I doubt there is probably has a compatibility problem with this app. It would be better to post your question at following forum.
http://answers.microsoft.com/en-us/windowslive/forum?auth=1
About camera problem, please check your camera driver and make sure it works with no problem.
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