I don't know if it's been posted before or if it's even possible... but!
My suggestion is that..
At the top of the msn window where the button is to hide the toolbar etc, there should be another button. When the button is pressed, the contact list slides off the side of screen, like what happens when you hide your display picture in the chat windows, then a new bar appears in the top right of your screen like a button with an arrow and when you press it, the contact list slides back out again..
Link 1
Link 2
the pictures might help to describe what i mean
is this possible or has it already been done?