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I can confirm the registry modifications in ffhhkk's thread fixed this problem for me, on 2 Windows 7 computers.
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I am running XBMC 10.0 on my AppleTV as delivered by the latest version of the launcher, and I still cannot connect to my Win7 x64 box with the Live-ID Assistant installed. Uninstalling it is not an option as multiple programs on my computer require it. Was the 10.0 release supposed to fix the issue on AppleTV, or is a fix still in the works?
The registry fix in the ffhhkk's post sounds too risky to be of any real use.