In my experience this error code occurs when Messenger tries to connect when a Wireless network is inactive. Since msn is stupid, it assumes that rather than the internet not being available, it thinks the service is down, and refuses to connect.
In a further example of stupidity, MSN will continue to report the error even when the network is reconnected and working perfectly. It continues to retardedly assume that the network is down.
The solution is easy albeit annoying – close and restart messager and shock, it then decides to start working. Can’t believe that in 2010 an application can’t differentiate between no connection available and service down, and then be unable to clear that assumption until the application is restarted. Ugggh!