Well, your contactlist doesn't look like Live Messenger 8.5 either. Looks like you're using an old version of Windows Live Messenger, which explains the problem.
See this screenshot:
Live Messenger 8.1 is on the left, Live Messenger 8.5 is on the right. Looks like you are using Live Messenger 8.1.
Download the latest version of Live Messenger, after you installed version 8.5 the skin should work.