send instant message option grayed out for contact

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Hi. I am running outlook 2003 on a windows xp home sp2 comptuer. I just
downloaded MSN Messenger 7.0. After receiving an e-mail, I want to send the
person an instant message. I have under the tools, options, then other tab
selected both options under persons names. These would be enabling smart
tags and displaying online status. However, when I go to the person's name
in the from line, and click on the smart tag, the send instant message option
is grayed out, even if they are online. I looked for this in the online
support, but nothing came up. Any help is appreciated. Thanks.
Eric
.