errr.... As Matty pointed hinted out there is a way easier solution since the peeps at MS already made it happen... if you have an hotmail/live email.
Simply log in to Windows Live Mail (former hotmail) and there you have an option to save your entire Messenger contact list (or just the contacts you like) as a CSV file. This file will also include all the other info like addresses, phone numbers, etc as well:
1) Log in to Windows Live Mail (
http://mail.live.com)
2) In the left menu click on
Related Places >
Contact List
3) Select the contacts you whish to export
4) In the top menu click on
Manage >
Export
5) Verify the captcha on the next page and click on
Export
6) Save the
WLMContacts.csv file to the location you choose.
As per usual, it may seem like a lot of things todo, but it is actually extremely quick; just clicking on two menus.
Messenger can indeed only export to a CTT file (which is an XML formatted file).