It's so easy to eavesdrop people in MSN from another computer in the same network (behind the same firewall).
Just get WinPCap and Ngrep. Copy ngrep.exe to your Windows folder (for easier access), open up Command Prompt and type "ngrep port 1863" and voilą! You'll see even more information than MSN shows you.
You can see when people even open your (or your roommate's
) chat window, before they even start to type to you something into it, and you'll see when they close your chat window.
Ngrep allows you to filter packets by host, which gives you the ability to have a separate console window for your own MSN traffic and another for all the others', or for some other specific IP's MSN traffic. If you want, you can filter out everything but the actual chat (by ordering ngrep to match something specific that only occurs in chat-text packets, like the string "text/plain").
Btw, here in Estonia, most wireless hot spots are eavesdroppable. Both public (caffees) and private (drive around and catch a net without wep).
Btw, I'm not a hacker, I just did a little googleing.
So, now when we have michael's argument out of the way, how about that encryption?