Hi Amey,
I did something a bit different... but that may help you, I blocked MSN on the network...
The following config may help you just to check you applied class/class-map/policy-map/service-policy configuration correctly.
Best regards,
class-map type inspect im match-all IM
match protocol msn-im
match ip-address 10.4.2.0 255.255.255.0
policy-map type inspect im NOIM
parameters
class IM
drop-connection log
policy-map messenger-in
class class-default
inspect im NOIM
policy-map messenger-out
class class-default
inspect im NOIM
service-policy messenger-out interface outside
service-policy messenger-in interface inside