The Settings.LiveUpdate should have text in it and be able to be opened by simple text editors, like Notepad for example. It's unusual for the file to be blank.
LiveUpdate makes copies of critical files by design. You can make use of this by opening one of these files and using it to replace your existing Settings.LiveUpdate.
I recommend you take the 1.Settings.LiveUpdate, open it with Notepad and "Save As" Settings.LiveUpdate.
If the 1.Settings.LiveUpdate file is in the same condition as the Settings.LiveUpdate, check 2 and 3.Settings.LiveUpdate. Hopefully, one of thes files will be in good shape.
Good Luck