You are getting this error when you Sign in to Windows Live Messenger, due to any of the following reasons:
  1. Incorrect date and time settings on the computer
  2. Microsoft Internet Explorer SSL settings are incorrect
  3. Firewall is blocking connectivity to Windows Live Messenger
  4. Incorrect Proxy settings
  5. Windows Live Messenger connection is blocked in the router
  6. Security certificates are corrupted or missing from your computer

  7. Computer is infected by virus and that has affected the security certificates
  8. Incorrect settings in the Hosts file

Troubleshooting Steps:

1.  Verify that the Date and Time Settings on the computer:

In Windows XP, 
           Go to Start, Click on Run, Type Control in the Run window 
           In Control Panel; double click on Date and Time
   In Windows Vista and Windows 7, 
          Click Start, type date and time in the Start Search box

          Click Date and Time in the Programs list 
Note: Make sure that the date and time settings are configured to use the current date, time, and year.

2.  Set Internet Explorer security settings:
        a. Open Internet Explorer
        b. On the Tools menu, click Internet Options, and then click the Advanced tab
        c.  Scroll down to the Security section; make sure that the following check boxes are set correctly 
        d.  Clear the Check for server certificate revocation check box 
                 Select the Use SSL 2.0 check box 
                 Select the Use SSL 3.0 check box 
        e. Click Ok to close the window 

3.  Reregister the SSL security libraries
           a. To register the SSL security libraries; run the following commands in Windows XP
               Click Start, click Run, type the following commands, and then press Ok

Note: After each command is executed successfully, you will receive a "DllRegisterServer succeeded" message. Wait until you receive this message before you run the next command
     REGSVR32 softpub.dll 
     REGSVR32 wintrust.dll  
     REGSVR32 initpki.dll  
     REGSVR32 Rsaenh.dll 
     REGGSVR32 Mssip32.dll 
     REGSVR32 Cryptdlg.dll 
     REGSVR32 Dssenh.dll 
     REGSVR32 Gpkcsp.dll 
     REGSVR32 Slbcsp.dll  
     REGSVR32 Sccbase.dll      

      To reregister the SSL security libraries in Windows Vista and in Windows 7, follow these steps:  
           a. Click Start and click All Programs

           b. Click Accessories and click Run

           c. In the Run window, type the following command one by one, and then press Enter: 
                    %windir%\system32\regsvr32 softpub.dll

                    %windir%\system32\regsvr32 wintrust.dll

         %windir%\system32\regsvr32 initpki.dll   \

4.  Scan for and remove any viruses on the computer: 
 If you have antivirus software installed, contact the manufacturer for information about how to update the signature files and remove viruses. 

If you do not have antivirus software installed,  you can use the Microsoft Security Essentials from http://www.microsoft.com/Security_Essentials/.
Additionally, visit the following Web site, http://www.microsoft.com/athome/security/default.mspx to protect your machine from virus.

 5.  Check your firewall and router settings:
 Ensure that port 443 is open to give access to secure Web sites. If your firewall is set to scan port 443, contact the firewall vendor or, verify that your firewall documentation explains how to check this and disable if this is happening. 

6.  Clear the proxy settings in Windows Live Messenger to establish a direct connection to the Windows Live Messenger service:
          a. Open Internet Explorer
          b. On the Tools menu, click Internet Options
          c. Click the Connections tab, and then click LAN settings
          d. Click to clear the Automatically detect settings check box 
          e. Click ok two times 

7.  Bypass router:
 If you are using a router, try to disconnect (bypass) the router and connect directly to the Internet, and then try to sign in again

8.  Verify that Internet Explorer is not set to Work Offline:
       a. Uncheck Work offline option based on the IE version:
                   In IE 6.0 and IE 7.0, Open Internet Explorer, go to File menu, clear the Work Offline option
                    In IE 8.0, Open  Internet Explorer, go to Tools menu and uncheck Work Offline option 
      b. Go to Tools Menu, click Internet Options 
      c. Click on Connections tab, check the option “Never dial a connection” option  

9. Clear the entry in the Hosts file :
       a. To clear the entry in the Hosts file, use one of the following methods:  
            In Windows XP,
                Click Start, Run, type %windir%\system32\drivers\etc, and then click ok
            In Windows Vista and in Windows 7, 
                Click Start, click Run, type %windir%\system32\drivers\etc, and then click ok
         b. In Windows Explorer folder window that opens, look for the Hosts file
         c. Right-click the Hosts file, click Open with, and then click Notepad
         d. Delete any entries that relate to the passport.com domain
            For Example : Loginnet.passport.com, Messenger.Hotmail.com,

            LoginMSNIA.passport.com, Login.passport.com and Gateway.messenger.hotmail.com 
          e. Save and then close the Hosts file 
          f. Try to sign in to Windows Live Messenger 

10. Clear the DNS resolver cache:
             In Windows XP,
               a. Click Start, click Run, type cmd , and then click OK
               b. At the command prompt, type ipconfig /flushdns , and then press ENTER.

               c.  Try to sign in to Windows Live Messenger
            In Windows Vista and in Windows 7,
               a.  Click Start, click All Programs, click Accessories, and then right-click Command Prompt 
               b.  Click Run as administrator
               c.   If you are prompted for an administrator password, type the password, or click Continue
               d.  At the command prompt, type ipconfig/flushdns , and then press Enter. 

               e. Try to sign-in to Windows Live Messenger.