Found the correct folder and moved it out.. Positive it was the correct one, as the folder was re-created when I attempted to login. Still unable to connect. Thanks, Matty.^^ But that doesn't seem to fix this problem.
I don't think any local files need to be changed. It's not an account specific file, it seems to be passport type specific. I created a brand new gmail account, created it as a passport, activated it, and still can't use WLM with it. Only Windows Messenger. Hotmail passports can still use WLM fine, though. Just sent it to Microsoft's support. See what they make of it.
And nope! Don't live in Australia, unfortunately. I live in the US.^^