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I have reinstalled the live messenger components.. then it works. anyway, here is the reply from MSN live solution centre. i hope this could help .

Hi,

You may have a corrupted contacts cache....

Thanks for your solution.. but my one works properly after i reinstalled it. weird..

Hi, devnullius. I m having the same problem as you. And I googled for solutions and only could find your thread. Have you found the solution yet?