To get into your file, disconnect from the Internet. Pull your ethernet cable or turn off your modem -- whatever it takes. Start Money, click below the password field to select "I want to sign in to Money directly, without access to all
online services." then click Next.
Once you are into your Money 2007 file, go to File-PasswordManager, and choose to remove your
LiveID. To remove or add a conventional password, also see File->PasswordManager.