The answer from Apple on why should I spend more on a Mac doesn’t make sense:
When you compare the cost of a PC and factor in the additional software, memory, and other extras you have to buy to go along with it, the difference in price between a Mac and PC isn’t as great as [...]

From http://www.robinmajumdar.com/2009/01/28/windows-live-messenger-unable-to-connect-with-error-code-80040200-solution-in-windows-7/
I have tried the method in this article and it worked like charm. Only catch was, when I tried to rename Windows Live Contacts folder, access denied. So I had to use Unlocker to stop processes accessing it. Thanks Robin!