Getting this error when trying to install a package to my local Sitecore instance via Sitecore Rocks. I am not aware of a "live" database so I am not sure where this is coming from. I have checked the ShowConfig to ensure there is only core, master, web in the databases/database nodes. No "live" db in there.
As Geoff already pointed out; the package seems to contain content for a database called "live".
You can see (and remove, if you want) this by opening the package file. I'm using WinRAR for this example:
When opening up the package archive, you will find
And opening that up, you will find a structure like this:
The "items" folder is the one you're after. In my example here; all I have are items in the "core" database - but presumably yours would have additional folders. Including one called "live".
You can rename or delete this folder (as appropriate, I don't know enough about your package to make that call), and the package should be able to roll on without issue.