Here are the steps windows live team sent me....
Quote:
The following commands delete files that you are using when you sign in and the Contacts Cache folders.
a. Exit Windows Live Messenger. Right click the Messenger icon beside the time and date of your computer. Click Exit.
b. Click Start, type %USERPROFILE%\AppData\Local\Microsoft\ in the Search bar and then press Enter. Delete the Windows Live Contacts folder.
c. Click Start, type %userprofile%\ in the Search bar and then press Enter. Delete the Contacts folder.
Note: This is for windows vista