Update:
I followed the instructions found on the second post of this thread:
http://shoutbox.menthix.net/showthread.php?tid=68265&pid=752237
I did a complete uninstall of WLM just like it said there and then reinstalled WLM. This appeared to have solved the problem at first. Every time I add a contact now is not instantly blocked so that's an improvement, but now I can't receive any requests of people that want to add me. Also I noticed the contacts I added after the reinstallation were nowhere to be found.
I just logged in to WLM and received add requests of all the contacts that were gone and everything appears to be working smoothly.
Another update:
It's still instantly blocking the contacts.
