A lot of people using or developing third-party clients connecting to the .NET Messenger Service have started getting error 401 Unauthorized during the Passport authentication process. It appears that from April 1st 2006, Passport 3 has started replacing Passport 2.
There is a pretty simple fix to this, you just need to change the way your code authenticates, the new Passport 3 methods involves a simple SOAP request, some nice folks quickly documented it at MSNPiki. There are also some implementations at the bottom for C#, Java, Perl and PHP.
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