After more research on my end, I found out it is a windows live error. I found another forum where this issue was addressed and it said to delete the windows live from my control panel/uninstall, so I did, expecting to reinstall windows live at the social club window after game start. Now the game gives me no errors, it just will not start, I can sign into social club and then it does nothing else... wow, I am a rockstar at messing up rockstar games.... so the social club and framework 4 are installed. I have no clue how to fix this one...
BEGIN *SIGNED* LCPD First Response Issue Report
Diagnostics Tool Version: 0.4.3
Operating system: Windows7 HomePremium (6.1.1.0 Build: 7601) Service Pack:Service Pack 1
System RAM (GB): 3.75
CPU cores: 4
NET Framework 4.0 installed: True
Visual C++ 2010 Redistributable installed: True
GTA IV - Installed: True
GTA IV - Install folder: C:Program Files (x86)SteamsteamappscommonGrand Theft Auto IVGTAIV
GTA IV - Version: 1, 0, 7, 0
GTA IV - Asi loader installed: True
GTA IV - Asi loader: DSOUND
GTA IV - Asi loader valid: True
GTA IV - C++ ScriptHook installed: True
GTA IV - C++ ScriptHook valid: True
GTA IV - C++ ScriptHook version: 0, 5, 1, 0
GTA IV - ScriptHookDotNet installed: True
GTA IV - ScriptHookDotNet valid: True
===============BEGIN .NET SCRIPTHOOK LOG===============
2012-05-21 18:13:51 - Initializing ScriptHookDotNet v1.7.1.4 BETA (GTA IV version 1.0.7.0)
===============END .NET SCRIPTHOOK LOG===============
End of *SIGNED* LCPD First Response Issue Report
Digital signature: vfuuq5vVBZaw2EmqobPtRg==