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Old_Man_Jenkins - also try setting up windows live but when it asks you which today screen plugins you want try leaving both unchecked.
Good troubleshooting though--that's pretty much what it takes to figure stuff like this out.
For what it's worth I tested windows live with my hotmail account and didn't have any freezing issues, but I also never have it show the main windows live today screen applet (not the search but the other one that shows signed in status and new live mail).
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