Want Windows Live Messenger to show up in the notification area:

instead of the taskbar?

The behavior of Messenger on Windows 7 startled me too, but I came to like it. It’s much easier to work with from taskbar than it ever was from “systray” (the nerdy, I-guess-you-had-to-be-there, name for the notification area.)

That said, you can get the old behavior using compatibility mode:

1. Click the Windows button and type “Windows Live Messenger” into the search box.
2. When the “Windows Live Messenger” icon appears, right-click it and choose “Properties.”
3. Click the Compatibility tab, and choose Vista compatibility mode:
   
4. Exit Messenger, and start it again.

An alternative for the screen-size-challenged is to resize the taskbar:

1. Right-click anywhere on the taskbar and choose “Properties.”
2. Check “Use small icons”
    

Karsten Palmvig provided the compatibility mode tip, among others.