MS Money 2007 on Win XP will not let me connect online telling me that Windows Live cannot verify my sign-in information. This happened in the last couple of days all of a sudden.

I guess I must have a different problem than everyone else because Jim's solution is not helping.  I have even downloaded and installed the sunset version of Money Plus and that doesn't help either.

In either version of Money, I cannot get past the opening page.  It doesn't matter whether I check the "I want to sign in to Money directly, without access to all online services." box or not.  Money refuses to recognize my Windows Live sign-in information.  I have created new Money files so that I can access My MSN as Jim recommends, but when I try to get to my original file, or the back-up, it's back to the same old problem.

The Windows Live support people can't or won't help me because they say (repeatedly) that it's not their problem since I can sign in to every other Windows Live application.

I am totally locked out of my Money files and I don't know what to do.

EDIT:  OMG, I tried one more time to change my Windows live password and IT WORKED!!  The only thing I did differently was to make IE my default browser.  I don't know if that made the difference, but at this point I don't care.  I followed all of Jim's instructions carefully from that point on and for now, it's working fine (knock wood!).  I guess I'll save the file as a OFX file to import to Quicken.  Don't know what else to do at this point.  I sure don't trust Money anymore.  Thank you Jim and Mike and anyone else here who helped or tried to (which leaves the Microsoft people out).

Yes, Jim's solution does work in W7. Here is the short version you can use in Dec. 2010... Best to have IE be default browser before Step 2.

1. Start MS Money 2007 and enter the Windows Live ID (email address and password that is linked to your MS Money file) to sign in to Money.Click the checkbox "I want to sign in to Money directly, without access to all online services." then click the Next > button.
2. After MS Money has started, click on the "butterfly" MSN.com icon in the toolbar located across top of MS Money 2007 window. If you don't see it, click "Shortcuts" icon in toolbar, then inToolbar Display Settings window, find MSN.com and add it, click on the new MSN.com icon.
3. Once the page loads within the MS Money 2007 browser, scroll about half way down the MSN web page to the Hotmail section, and click the "Sign up" link. Or type Mymsn.com into browser and navigate to it. 
4. On the MyMSN.com page (NOT MSN.com1 page!!, sign in using your Windows Live ID and password.
5. In Money, click the down arrow next to the Online Updates icon in top right hand corner. Choose "Sign In with a Windows Live ID" link from the drop down.
6. Sign in again using your Windows Live ID and password that is linked to your MS Money 2007 file, as usual (w/o clicking the checkbox in Step 1).

7. Now Money should be logged in. Click the Online Updates icon, then "Update Now..." button.

Mike K.

Jim's suggestion helped with his followup on how to add the butterfly icon.  Thank you!

For those of you that can't get Jim's suggestion to work or want a suggestion moving forward (perhaps you don't like quicken?  Or maybe you don't want to use Mint.com?  Or who knows what other reasons), here is what I'm going to be doing:

Every financial institution I use allows me to download transaction history in .ofx and .qif file formats (this includes every bank I use, my credit card company, and my online savings account).  I know clicking "Update Now" in MS Money was nice, but it seems I'm going to now have to change to manually download all my transactions in .ofx/.qif format from each institution I use.

Furthermore, if you lost your installation discs or need to re-install, Microsoft is offering Money Sunset version for free ( http://www.microsoft.com/money/sunset.mspx ).  You can download it (34 MB) and install it on as many machines as you like.  It seems the sunset version will also let you import .ofx/.qif files.  Sunset version will also open up old money files (2006, 2007, Deluxe and non-Deluxe, etc, etc).

In the end I know this isn't ideal, but I've tried using other services (Quicken/Mint/Wesabe) but I never liked them.  I also have a bunch of custom reports in MS Money and I know how it all works.  It is sad to see the online services portion of the product go, but I'm willing to pay the price in time (by downloading transactions) to keep using something I'm familiar with.

And since the Sunset version is now free, it seems I don't have to feel bad about installing it on multiple computers either :-).

Anyhow, like everyone else here, I'm sad to see the online updates disappear... the good thing is the product is now free and for those that can't switch to something else (like me), you can see if your financial institution will let you download transactions.

Good Luck!

This still isn't working for me...I tried changing my password and I am still stuck....I can't pay my bills and feel very helpless. Please help me