Well I didn't need the screen of your DNS.. Its a bit....private..
Anyway so you can initiate a connection long enough to recieve or send a file. Ummm you might need flash player (theories) or shockwave installed I don't really know ummm (racking my brain)
OK Bingo I saw the TCP/IP settings and unless you erased the data in them why are they blank. Do you know your DNS. Your DNS should NOT be set to obtain automatically. Not if your using ADSL anyhow. Same thing with your I.P address. Ring your ISP up and ask nicely for the information that goes in both those boxes.
Using a program like HijackThis or Spybot S & D can remove the information from those boxes and thus not affecting your web surfing it can affect things that need a long time to connect with something.
Try that tell me what happens.
EDIT: I just thourght of 2 things:
IMPORTANT: Can you RECEIVE offline messages?
And secondly also very important I think the ability to send/receive offline message has to be enabled like when you first get one it says do you wish to allow these? Or something
EDIT AGAIN: I looked in the WLM options ( Tools > Options > Messages Side Tab) and it says:
Offline Instant Message Settings
Show my offline messages when I sign in
( ) Show a Link to my offline messages in the main window
Which one is selected? If the top try the bottom. If the bottom try the top. Tell me what happens.