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“You could not sign in because of aproblem with the service or with your Internet connection. Please make sure that you are connected to the Internet. Error 81000306”
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This error might have occurred due to any one of the following reasons:
      1. You are not connected to the Internet
      2. Windows Live Messenger service may not becurrently available 
      3. Windows Vista Auto Tuning Networking feature may need to be disabled 
      4. Windows Live Messenger proxy settings are incorrect
      5. Computer network does notallow access to Windows Live Messenger service

TROUBLESHOOTING STEPS:

1.     Make sure that your computer is connected to the Internet.
a. Open Internet Explorer
b. Try to visit any newwebsites to ensure that the page doesn’t pull up with the cached information when internet is not available
c.  If you cannot access internet, contact your Internet service provider to get your internetconnection back.
 
2. Clear the proxy settings in Windows Live Messenger.
a.  Open Windows Live Messenger 
b.  On the Tools menu, click Options
c.  Click Connection in the left navigation paned.  Click Advanced Settings in the Connection Settings section
e.  Delete the content of the SOCKS field
f.   Click Ok two times to save the settings
                          If you are still notable to sign into Windows Live Messenger then proceed to Step -3 
 
3. If you are using a router (eg. Linksys, D-Link, Net gear) on your home network to connect to the internet, visit the routermanufacturer's website to update to the latest firmware for that product. 
 
4. If you are using Windows Vista or Windows 7, disable the Auto Tuning Networking feature and here is how you disable...