Names won't stay. Let's use Machazo for the example. He has his name as Machazo U Mad, but I just simply changed it to Machazo in Contacts in Windows Live Mail, but every now and then, it will switch back. This happens with a lot of my contacts, while, with others, it doesn't.
I guess you can say both since the contacts I have are listed under both Live Mail and Live Messenger. I have not.
I have an error message pointing out that there is a connection error. However, I am still having conversations and I am connected to the servers.