I had this problem with the x31 patch aswell...
When I tried updateing thru the automatic updater in "List Of Hosts" it had an error saying it couldn't save the setup file, it tried again and it still couldn't save the setup file...
Solution:
I found that when I right-clicked the "Live For Speed" shortcut and clicked "Run as Administrator" it saved the setup file and installed fine.
I have Windows Vista Ultimate 32bit and I am an Administrator.
I think the problem is that my LFS directory is in C:/Program Files which is a protected directory. The people not having the problem probley don't have it in C:/Program Files.
I added pictures (It may help)

