Try clearing your contacts cache.
quote:
Originally posted by Sunshine
Exit WLM and delete the two contact caches (folders) corresponding with your
passport in the following folders:
%userprofile%\contacts
%userprofile%\Local Settings\Application Data\Microsoft\Windows Live Contacts
(fastest way to get there is to go to start > run..then type in the folders as i put them above)
After that restart WLM and sign in again...now note that first sign in might take a little longer as WLM will have to get your contactlist from the server. How long it takes depends on the number of contacts you have on your list.
If that doesn't work,
CookieRevised's reply to Contacts problem