This worked, however, if you notice, you will see that when in Compatibilty mode (regardless of what OS you use, other than windows 7), that the memory usage climbs and climbs and climbs... Just sit there and watch it climb past 2gb. Not sure what bit of bad coding there is for MSN messenger in compatibility mode, but it uses a ton of memory over time.
If put back off compatibility mode, the memory usage stablizes.
I have tried this work-around on three systems and later noticed that the memory usage was getting higher usage... I tracked it down to the compatiblity mode work-around.
All three systems running windows 7, two Windows 7 64bit and 1 with Windows 7 32bit.
If anyone has another work-around, I am all eyes.