If you want to try the official route or keep original functionality:
This is the most common community solution as it removes the dependency on the broken GFWL service. How to Fix Xlive.dll Error in GTA 4
: Complete the installation and restart your PC before launching the game. Troubleshooting DLL Errors If the error persists, consider these system-level checks: If you want to try the official route
: Get the "Games for Windows Live" installer from the official Microsoft website . How to Fix Xlive.dll Error in GTA 4
: Check your protection history to ensure your antivirus hasn't quarantined the file by mistake.
: Ensure you have the latest packages from Microsoft installed.