Windows Live Setup Service – WLSETUPSVC.EXE
Wlsetupsvc.exe is the Windows Live Setup Service. You'll find it in your c:\Program Files\Windows Live\installer\ folder. You'll find this file on your system if you have any of the Windows Live components installed on your system (Windows Live Messenger, Windows Live Mail/Desktop, Windows Live OneCare, etc). Once the program is installed and running properly, this file should no longer need to be running. Rebooting your system may get rid of it.
You'll find more information at http://get.live.com/. You'll find a listing of current Windows Live Beta test products at http://get.live.com/betas/home.
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Microsoft