Here is another post about it and it has a link to another post
http://shoutbox.menthix.net/showthread.php?tid=43713&pid=450152. I think it should be added though. Most other messengers has a addon that lets you do it. Messenger discovery use to have it but does not now. Here is other programs that will do it
IMsecure,
Encrypted Messenger,
SimpLite.
Of course everything is logged. Why do you think on 911 the fbi went to aol msn etc... Remember when comcast got sued cause they were tracking their customers. The question is why would msn pick out one certain person out of the millions of people on msn messenger to snoop on. That will not happen unless your doing something really bad. What you should be worried about if you are gonna worry is what them encryption programs sites say
from SimpLite
" Did you know your messages are sent over the Internet in cleartext form?"
from Encrypted Messenger
"Why should I encrypt my instant messagaes?
Because they are sent from you to the other chatter in plain text. This means anyone on the internet between you and them can (if they so desire) read your instant message conversation.".
If you look in security forums or messenger forums when they talk about messenger encryption they all will tell you it is very easy to look at what someone is saying on any messenger not just msn. Like I said most messenger aim, yahoo, icq has a plugin or program meant just for that program for encryption so you do not have to use the 3 programs I listed. Msn is the only messenger I have fount that does not have this.
Here is something I fount using a google search
http://channel9.msdn.com/ShowPost.aspx?PostID=97906. Do a google search and a google group search to for microsoft logs msn messenger conversations and see what comes up. Doo not know if it is true but look at what a0011010011 said on
http://channel9.msdn.com/ShowPost.aspx?PostID=97906. I suppose you could always email them or if you their number call and ask.