We have recently seen this issue crop up at one of our client sites.
One fix I have seen that might help with the automatic sign-on process
hanging is to modify the registry setting for the server address to
which MSN is trying to connect. The registry key can be found at
HKCU\Software\Microsoft\MessengerService\. Edit the String "Server" to
read messenger.hotmail.com;64.4.34.200:1863

I still don't know what is causing the repeated Display Name prompt,
but I am thinking it is something being forced down by Microsoft for
security reasons.

Let me know if that helps.


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