--- a/libpurple/protocols/msn/directconn.c	Sat May 15 08:02:08 2010 +0000
+++ b/libpurple/protocols/msn/directconn.c	Mon May 17 07:34:52 2010 +0000
@@ -854,6 +854,12 @@
 				msn_dc_outgoing_connection_timeout_cb,
 				dc
 			);
+		} else {
+			/*
+			 * Connection failed
+			 * Fall back to P2P transfer
+			 */
+			msn_dc_outgoing_connection_timeout_cb(dc);
 		}
 
 	} else {