If you look at the error details, it actually coming from DotNetOpenAuth which is used for openid, it isn't related to windows live auth.
My advice is to disable the open id auth in site settings. This error could be something fixed in a newer version of DotNetOpenAuth and I can look into updating it, but really very few people know what openid is. I highly recommend use Janrain Engage instead, it supports openid under the hood and keeps up with changes in the implementation but for users it is much more user friendly, they don't have to know anything about openid or that their common accounts such as google and yahoo support it, they just need to know they can login without new passwords. In fact, Windows Live is a bit nebulous at the moment becuase they are transitioning it to the Azure marketplace (Just as Bing search did recently) but there isn't any documentaiton I know about changes to the api or how to update to the new azure version. You can also enable Windows live via Janrain Engage so I would recommend disable the built in Windows Live auth and just make it part of the one Janrain widget.
Janrain keeps up with all the implementation details for openid, oauth, windows live etc on their end so we don't have to worry about the changes and keep up with them ourselves, in addition to providing a much nicer user experience for single sign on.
I will see if there is a newer DotNetOpenAuth dll I can upgrade to though.
Best,
Joe