Resolved mail client not properly installed

Running window 7 and IE8, when I try to use an email link within an email
Window internet explorer returns the following msg "

"Cannot perform this function because the default mail client is not properly installed "

With Window 7 I am using window live hot mail ...

suggestions?:

 

If you open IE8 and click on Tools -> Internet Options then click on the Programs Tab
What are the choices for E-mail:

 

none, try to select window live enter ok but it does not seem to do anything

 

Choose Windows Live Mail and Press Apply and then OK and see what happens.

 

did that, however the apply bottom is not active, something however happend, when
I used the link in the email, IE8 tries to setup a new email account, with the name of the email link (which I of course did not want) Under outlook express (window 7 does NOT have) when I clicked on an email link, it would bring up the new mail screen with the (link) email address.

 

If you open IE8 and click on Tools -> Internet Options then click on the Programs Tab
choose another E-mail. Then choose Windows Live again and the Apply button should be activated. Press the Apply and then press OK.

 

thanks

and a happy New Year