Try set em all to "block this person...", then click "OK".
Cancel does nothing (besides making that popup dissapear), it makes em pop up again next time you log in. Clicking "OK" without you changin it to "block" should put them in the allowlist and contactlist again.
If the above doesn't work i advice a reinstall/repair of MSNM. If still no avail: a clean install of MSNM.
To do that:
- Uninstall MSNM
- Reboot
- Remove all folders in Program files folder pointing towards MSN Messenger
- Reinstall MSNM (maybe even redownload a fresh installationfile before reinstalling).
Edit: you're welcome