Same problem here.  Two days ago Empathy works fine, Yesterday I update:
adobe-flashplugin (10.1.82.76-1) to 10.1.82.76-1lucid1
libsmbclient (2:3.4.7~dfsg-1ubuntu3.1) to 2:3.4.7~dfsg-1ubuntu3.2
libwbclient0 (2:3.4.7~dfsg-1ubuntu3.1) to 2:3.4.7~dfsg-1ubuntu3.2
samba (2:3.4.7~dfsg-1ubuntu3.1) to 2:3.4.7~dfsg-1ubuntu3.2
samba-common (2:3.4.7~dfsg-1ubuntu3.1) to 2:3.4.7~dfsg-1ubuntu3.2
samba-common-bin (2:3.4.7~dfsg-1ubuntu3.1) to 2:3.4.7~dfsg-1ubuntu3.2
smbclient (2:3.4.7~dfsg-1ubuntu3.1) to 2:3.4.7~dfsg-1ubuntu3.2
winbind (2:3.4.7~dfsg-1ubuntu3.1) to 2:3.4.7~dfsg-1ubuntu3.2

and start to show "Network Error" connecting MSN.  Facebook and GTalk
are fine.

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Empathy shows "Network error" on all different connections.
https://bugs.launchpad.net/bugs/534842
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