I am on Windows live Mail 2012 under Windows 8.1. The management of Contacts Categories in Live Mail 2011 worked beautifully but several things are different in Live Mail 2012. I can live/work-around some but my biggest problem is trying to  'update' a category list. When you call up the edit on the category, the current category names are no longer hi-lighted. Without this feature it makes it very difficult to update. If I have 500 contacts and I'm trying to update a category with 30 contacts it is very very difficult to do.  I am looking forward to a fix on this, a reversal to the Live Mail 2011 way, or an explanation on how the 2012 works.