MS Messenger 8.0.1 running under Mac OS X Lion (10.7.2) cannot login - Login (0) failed with error: (7.0) using Proxy Server.
I'm running Squid proxy server under Ubuntu Linux, doing tail -f on Squid's access.log. When I click connect in Messenger, NOTHING appears in the proxy server log UNTIL AFTER Messenger gives up and pops up the dialog box that says "Sign in to Microsoft Messenger failed because the service is not available or you may not be connected to the Internet."
That most likely means that the socket is being flushed as Messenger shuts-it-down, which smells like Nagle Algorithm is not being disabled on the socket.
Now, there might be some kind of preference that I can set under Lion, (still learning my way around Mac OS unfortunately), but disabling the Nagle algorithm system-wide would not be a smart thing to do. (Lowering the threshold system-wide might work, but also probably not the smartest thing to do). I do get the impression that something changed in OS X Lion that caused this to break.
CONCLUSION: If you're trying to connect MSN Messenger via a Proxy server, (using HTTP), you are out-of-luck until Microsoft finds, fixes, and releases an update. :-(
Possible work-arounds:
a) I have had zero luck with version 8.0.1. I did get MSN Messenger 7.0.3 to connect while directly connected to the internet, but I had to delete the .plist file as in the above posts. (Or maybe it was the 'Clear Account History', I tried them all). Sadly, a direct connection is not an option for one of my clients.
b) Adium 1.4.3 works with HTTP, but it has a known bug that apparently causes the socket to close after a period of inactivity. Result: Lost inbound messages, which is worse than having nothing at all.
c) You can login to login.live.com with a WEB browser and use IM there. (But you have to keep your browser open).
Up next: How about a SOCKS proxy. Will Messenger work through a SOCKS proxy? (See Spot. See Spot run. Run Spot, run!)