I am having a problem with "setting message flags" happening very often and taking way too long.
I ran across a Microsoft Forum Moderator response that said Windows Live Mail may need to be repaired and to follow the procedure you show above.
The problem is, when I click on Windows Live Essentials 2011 I do not get a "Repair all Windows Live programs"I get "there is a problem with one or more of your Windows Live Programs..." and it wants to uninstall - not repair.
Can I upgrade to 2013 and see what happens