Had the same problem, follow these steps and it will work again , if it doesnt give me a shout and ill see if i can help
How, I resolved it:
NOTE: When working in the Registry Editor (REGEDIT), please perform only the steps as described below. Doing otherwise can result in serious damage to the Operating System. Microsoft and MSN can not be held responsible for this.
1. Shutdown messenger (right click on the icon in the tray -> Exit). Make sure it's gone
2. Click on Start and Run and type in REGEDIT and hit Enter
3. In the registry editor, click on ìHEKY_CURRENT_USERî, followed by ìSoftwareî, followed by ìMicrosoftî, followed by ìMSNMessengerî, and followed by ìPoliciesî.
4. Select the ìPoliciesî key and delete the folder.
5. Close Regedit and goto "%userprofile%\Application Data\Microsoft\" (i.e. C:\Documents and Settings\YOURNAME\Application Data\Microsoft\).
In here you should see a "MSN Messenger", either rename it ("MSN Messenger-CORRUPT", or delete it).
6. Restart your machine.
I was able to sign into live messenger after that.
Hope this helps you
If you cant find C:\Documents and Settings\YOURNAME\Application Data\ you need to go to folder options and show hidden file
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