Shoutbox

Dear all
I have some MSN questions here and please advise me.
I don’t really understand how does an MSN work therefore your answers are needy.   

Esp I don’t know if my friend have re-add me? I really don’t know if this is a chance to salvage a friendship. I wonder if she knows that I can see her online. Now I can see her online, perhaps she might block me even she knows I can see her online. 
I see her online many months later, I dare not strike a conversation with her at all.
Because nobody know what will be the outcome> If I talk to her, she might no longer online again anymore.

This is what I encountered
1) I am using Window Live Messager Version 8.5.
One day I emailed my friend Jane, I got a “Delivery Status Notification” from Hotmail postmaster.
I was informed that the email failed to deliver “This is an automatically generated Delivery Status Notification.  Delivery to the following recipients failed”
The details txt file read “Requested action not taken: mailbox unavailable”.

I have not seen her online for long. Later, I came to find out that Jane has deleted me from her contact list. When I right clicked her name on my MSN privacy tab, the delete option is enabled. (“Delete” button is not in grey).
Assumed that her PC crashed and after 120 days (about 4 months) without access, her Windows Live Hotmail account becomes inactive.

My first question is, inactive account will not caused the removal of me from her MSN’s contact list and she did not block me?

2) Half a year later, I saw her online on MSN.  How come I am able to see her online?
Is it because I have not remove Jane from my contact list and she did not block me, I can see her online status?
She could have deleted me from her contact list, she did not block me, and therefore I can see her online?

3) Under Tools > Option > Privacy> Contact list> See who has added you in their contact list> View> the following people have added you to their contact list> Jane is not in the list.
If Jane has deleted me from her contact list and she re-add me again, will her name re appear in my list?   
I did not receive the "Jane wants to add you" dialog box. This because all along I still have Jane’s contact.
I am able to see Jane online; Can she see me online if she has removed me from her contact list?

4) At this stage, I cannot determine what is my status in Jane’s contact list? Delete and/or Block, re-add?
I am able to see Jane online but can she see me online if I did not strike a MSN conversation with her?

I have installed MSN Plus version 4.6. Open “Contact List Clean-up” window, I select "Show contacts who have you in list” Jane’s contact is not there.
“Show contacts in your list has you” Jane=No

Please help me. Thank you.