Even worse, if I remember correctly they silently truncate passwords longer than 16 characters. I wasted nearly an hour trying to log in when they started doing that.
They're not the only site to silently truncate passwords, unfortunately.
(I hope you're joking about spending an hour trying to log in, though.)
The only reason I had a Live account was for the xbox, and one day they updated something and I suddenly couldn't log in. It took me ten or fifteen tries to figure out why my newly-reset passwords weren't working, and it took their system two or three minutes to deliver each password-reset email.