To troubleshoot the problem:

1. Clear the Windows Live Messenger proxy settings
1. Start Messenger.
2. On the Tools menu, click Options.
3. Under Connection, click Advanced Settings.
4. Delete the entries under SOCKS.
5. Click OK, and then click OK again.
2. If your computer is running Windows XP, clear the DNS resolver cache
1. On the taskbar, click Start, and then click Run.
2. Type cmd, and then click OK.
3. At the command prompt, type ipconfig/flushdns, and then press ENTER.
   
3. If you're still unable to sign in to Messenger 
1. Check your firewall settings:
1. Go to the MSN Web Messenger website.
2. Click Start MSN Web Messenger, and then try to sign in.
3. If you can sign in to MSN Web Messenger, but Windows Live Messenger still can't access    the Internet, Windows Live Messenger may be blocked by a firewall. You may need to add MSNmsgr.exe to your firewall's allow list. See your firewall's documentation or website for more information on how to add MSNmsgr.exe to your allow list.
2. A dial-up connection may be timing out. Wait a few minutes, and then try to sign in again.
3. If your computer is part of a corporate network, contact your network administrator to make sure that the network allows access to the Messenger service.
4. Make sure that your antivirus or antispyware software doesn't conflict with Messenger. 

     Today i fixed this error with procedure as following :

              1. uninstall MSN suite (Windows Live Installer & Windows Live MSN , etc .. ) 

              2. reboot computer

             3. re-install it with new one http://get.live.com/messenger/overview .

info : http://help.live.com/

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