Apparently Microsoft has had some server issues as of lately:
http://windowslivehelp.com/thread.aspx?threadid=7d165548-a7a0-4616-ad24-bb2444a23db9&page=1

Maybe they changed something in process of resolving the server issues,
or maybe they are not finished fixing it yet..

I'll just leave it and see what happens in a few days..

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https://bugs.launchpad.net/bugs/887481

Title:
  Unable to connect to MSN/Windows Live network

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