I save my contact list every month or so, in case something happens, but after opening a new contact list in notepad, I found that it included my blocked contacts in the same grouping as my unblocked contacts.

It looks like the code just adds all the contacts, without remembering who was blocked...

Is there a way to set it to remember who was blocked, or to not save the blocked addresses? Is this a feature in MSGPlus, or MSN itself?

I think that can't be done, not with messenger, not with plus.