It turns out that the KB article is too nice to monitor companies.
http://www.mydigitallife.info/windows-vista-photo-gallery-yellow-tint-background-problem/ goes into greater detail and says that certain brands, such as Samsung, tend to ship broken ICC profiles. The broken ICC profile then causes problems.
The fix is the same as the one outlined in the KB. One merely goes back to using the default Windows ICC.
At least 1 person reports that this bug also affects Photoshop, which is understandable because Photoshop also uses ICC profiles.
Since it's possible to generate a new ICC profile and use it thanks to the Windows Color Calibrator, it's possible to have a working custom ICC profile. I haven't tried using the calibrator to twiddle with the color values though.
Just Guessing:
It is possible but unlikely that both Photoshop and Windows Live have a bug.
It is possible and somewhat likely that something about how Windows handles ICC profiles is causing the hiccup.