I'll try to remember this...
Go to C:\Documents and Settings\[your username]\Local Settings\Applications (might be Application Data instead, can't remember) and look for Windows Live Contacts and delete its contents, but keep a backup just incase this causes side effects. The folder will come back if it needs to I'm sure. This seemed to solve the problem.
(For Windows XP, sure it's similar for Vista, just the folder's in a different place)
Some of her settings returned to default, but I'm sure that won't be a problem for you, as long as it works.
Worked a treat
For those using Vista the folder is located in C:\Users\Username\AppData\Local\Microsoft
Taget fra et forum, som jeg fandt ved en enkel google søgning "msn fail 8e5e0152"