"Your contact list is currently at or over 150 contacts, the server-imposedlimit"

Hi MSN gurus... and Happy New Year

I've written to Microsoft support 5-6 times last year and no help so
far. The problem is that I suddenly lost the ability to block users who
added me (and 5 to 10 would attempt to add me daily), or add those who I
wanted to add. I gave up on MSN because upon signing up the list of
pop-up was growing and closing 50+ of them was not really
possibly/feasible anymore.

I've just installed Trillian v3 and connected to MSN. The pop-ups I see
in MSN are also present in Trillian. The only difference is that
Trillian gave me the following error message when I tried to block a
user (I get that message for all users I block)

"Your contact list is currently at or over 150 contacts, the
server-imposed limit. You may not receive status notifications for your
contacts if you exceed the limit, and might want to clean up your list
to ensure proper functionality"

I few questions that come to my mind:
1) Is MSN really limited on the server side to just 150 users???
2) Do blocked users get recorded in my list???? (I've got 100 or so
users that I added, definitely not 150+ but I know some 5-10 users per
day try to block me and I reject them)
3) Is there a fix for this? Either by requesting bigger list from MSN
(how do I do that?) or by removing some of those users I never wanted in
my list (I see tons of those in my list but I cannot delete them. I
installed the latest MSN7-beta and the "Delete" option when I
right-click on a users is grayed out)

Thanks to all in advance!
Marv

PS. Jonathan, you've helped me in the past. I'd be very grateful if you
can look into my problem.