If you are in the same situation like I was for a few months now and you get a "Code: 80048823" error when trying to sign in to Games for Windows LIVE on your Windows PC with your correct username and password, this article might contain the solution you are looking for.
If you were wise enough to choose a long (> 10 characters) and cryptic password so script kiddies can't just take over your LIVE account, Microsoft's Games for Windows LIVE client simply can't handle your password and will give you meaningless error messages.
Login to your LIVE account through https://login.live.com and change your password to something that is no longer than 10 characters.
There you go. That's it. You should be able to login again.
Asking for credit card information while not supporting secure passwords. Way to go Microsoft.