OK – So the issues I mentioned in my earlier posts all seem to have been cleared up. The Insert Disk issue was resolved by putting a memory card in my memory card slot. I am happy to have it in there, doing the Ready Boost thing. System has been running great for a couple of days now. I have reinstalled the Windows Live stuff and am blogging this with Live Writer on my Windows 7 system. I also switched over to Kaspersky for AV, but still using the Windows Firewall. Overall, I am impressed.
Update: I forgot to mention that I have the LiveMesh Beta running again as well. No issues with install or sync so far.