Just a general inquiry here. Does windows live send messages over local networks and not the internet when the two partys in the chat are both on the same local network? I've been using winrar and windows live to move music from my old pc to my new and noticed my LAN lights blinking the apropriate speed but looking at my modem it was showing idle activity. Anyone know?

PC > Router > Modem > .... MSN Server ... > Modem > Router > Other PC

You could do a test and unplug the modem, or the router/switch when you try to chat.

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