As Live Mail is no longer supported I doubt it will be fixed by Microsoft however there is a fix:
Close Windows Live Mail.
In the registry under
Computer \ HKEY_CURRENT_USER \ SOFTWARE \ Microsoft \ Windows Live Mail
Create these 3 DWORD entries (were not available for me) or change to 1 if they exist
RecreateFolderIndex = 1
RecreateStreamIndex = 1
RecreateUIDLIndex = 1
Restart Windows Live Mail. Then the message display goes back to normal for me and the 3 values in the registry are reset to 0. Can be left as it is.
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