I think so. Here's the solution:
Quoted from Messenger Support Space: "Are you recieving XML Error when you try to view the Message History from MSN Messenger or Windows Live Messenger
If you have installed IE 7.0 Beta 2, try changing the Message History path in Messenger through Tools-Options-Messages. Select a path which does not have a space in it.
Remember to copy all the files in your original Message history folder to the new folder so that you will be able to view past Message History after this change. "
Link:
http://spaces.msn.com/messenger-support/blog/cns!...A8B853F!1752.entry