Krelina I have the exact same problem, to everyone on the forums I can say the exact same thing about my connection and the testing.
Everything is set up correctly, all firewalls are fine. And it will literally sit there signing in, forever. It also seems that it WILL work with hotmail accounts like was said, as iv'e tested that, so that eliminates all connection problems with Live, as it does still work with a Hotmail passport, just not the Custom ones, like gmail for instance.
Also I have tested my account, which is a gmail passport, in Windows Messenger, and it signs in and works fine.
Interestingly though, if I am signed in on Windows Messenger, and then attempt to sign in with the same account on Live, it will sign me out of Windows Messenger, saying I have logged in somewhere else, but of course all live does is sit there with the dudes spinning around constantly.
I am sure this must be a problem at Microsofts end, has anyone else got the same issue? Would you happen to be in Australia Krelina? Thats where I am posting from.
Just letting you know you arent the only one with the problem.
Hopefully it will be fixed soon, Windows Messenger is....different
ManicVJ