I'm having a problem with Windows Live Mail as well, after using Windows Easy Transfer. I did the transfer to our NAS and then, since I was upgrading from Vista Ultimate 32 bit to 7 64 bit on a laptop that had been at full capacity - I decided to format the hard drive, reinstall Vista and the drivers, and then do the clean install of 7.
When I transferred my MIG file back from the NAS, everything was there. I thought. Until I downloaded Live Mail. I have not been able to find my old mail and contacts since the change. I had saved a csv file of my contacts back in May, so I was able to import that into the program so I'm almost up to date there, but I have not been able to locate my emails anywhere.
I have a windows.old folder and a windows.old.ooo folder as well. I have dug through those files to no avail. Any clues?