People or contact search

Hi,
Just installed Windows Live Messenger a few days ago. Have not been
able to figure out how to search for or find other people who use
messanger.

The help file seems to imply that entering names into the contact
window will automatically bring up people as you type. For me, the
only place this looks is in my own Contact file ...and there is nothing
there.

Is there in fact a people search that looks out into the web for other
Messenger users?

Any help appreciated.

peter