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do a search for all Keys named msn (case not sensitive). make sure Keys is the only thing selected.
then, delete all of the keys it finds.
reinstall msn after this. if it still hangs at the connecting screen do:
start -> run -> control userpasswords2
click the advanced tab.
click manage passwords.
remove all the entries that appears here (this removes the passport information that oftentimes conflicts with xp, this isn't applicable in any other os (possible 2k, but i'm not positive))
do this before reinstalling windows.