After discovering how to make an offline profile I decided to remove all the stuff that had been put in the Rockstar folders by the xlive Wrapper. I removed the xlive.dll and the ylive.dll and the ylive.dll.cat.
The dialog box said wen I first tried to launch the game with the wrapper's xlive.dll in the game folder that it was going to copy ylive.dll and ylive.dll.cat from the system32 folder to the user...../appdata/GTA IV folder so I figured I could delete the copies. Well it must have lied and moved not copied the ylive.dll and ylive.dll.cat files because now there are no ylive files on my machine. That is possibly why I cant access the Windows Live ID server.
Please dont tell me I need to start from square 1 and reinstall the game. The off line game works fine and I have actually managed to finish 6 missions now. If it turns out that a reinstall is necessary to restore access to the Windows Live ID server then I will just never play on line.
I checked the status of the Windows Live ID server from their web site and it says it is running normally so I know the problem is not a server down issue. If anyone agrees that the loss of the ylive.dll and the ylive.dll.cat files from the system32 folder is the problem could they possibly send me the files if they are not user specific but the same on all player's computers.
In the mean time I will just be playing off line