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¡Firedog wrote:
I've not seen another instance where when I try to reply to an incoming message, nothing appears on the screen as I type and, if I press ENTER, just a red line appears. ... There are plenty of cases where the user isn't able to reply or forward, but the ones I remember involve an error message reading A problem has occurred while trying to open this message ...

The problem maybe more widespread. I am running win 7 pro with Win Live Ess 2011. I have 3 accounts gmail, hotmail, shaw.ca and I cannot reply or forward any.

I get an error message not a redline. When i try to repair Essentials, it gets almost complete then announces it has lost internet connection which has happened 3 times in a row. Connection is good each time. 

I wonder if it is connected to a firewall issue in a bad update by MS?

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