Thank you for your time and patience regarding this concern.
I was able to check the favorites you’ve attached and rest assured that they’re not corrupted and MSN should be able to download them from the servers. Since we already have a copy of the favorites.xml on the Desktop, please follow the steps provided by Natasha last Monday, February 20, 2012 11:20 AM but this time delete favorites.xml inside the Userdata folder.
The last part is to refresh the local data storage:
1. Start MSN, but do not sign in. When the sign-in screen appears, press CTRL+SHIFT+F9.
Important You should receive a warning about removing the e-mail information. If you instead receive a warning about removing the account information, you may have pressed CTRL+SHIFT+F11 instead of CTRL+SHIFT+F9. If you receive the account information warning, do not confirm this action when you are prompted.
2. When you are prompted to confirm your action, click Yes , and then click Yes again.
3. Restart MSN, and then sign in.
4. After signing in, wait for about 15-20 minutes for the MSN software to synchronize your favorites before checking if the issue gets resolved.
As for your wife’s missing email address, I tried to check her account and it seems that it is not associated with your primary account. Please follow the steps on this link to add her again:
http://answers.msn.com/solution.aspx?solutionid=3dc456fb-adf6-4492-86ab-a30285ea9a5a
Feel free to reply to this post for any questions and feedback.
Thanks!