Well it's got me baffled then. I don't know if you'll like this suggestion, but how about uninstalling Spycatcher. Then re-install the offline installer version of LW again. I've a suspicion SC is removing components of LW & that's why it won't work. Your reinstallation was probably damaged as soon as you launched it or maybe even during installation.

After you uninstall Spycatcher & before you reinstall LW, run this small utility Crap Cleaner as it will help to clean up your system registry wise. If Norbie recommends it, it should be good.
Actually whilst you're at Norbie's site, you might want to have it checked over. NorbiesWorld (click on link) & run his recommended program & report it on his site.