Yes it's still an issue in Lucid.
I've setup my account in empathy, then desinstalled empathy and installed 
pidgin. The bug occured at this point.
To fix it, I had to reinstall empathy, delete my MSN account, and re-desinstall 
empathy.
quite hard :)

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Pidgin account disabled on status change (MSN)
https://bugs.launchpad.net/bugs/449007
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