Yes, that's how Windows Live Mail works: http://answers.microsoft.com/en-us/windows/forum/windows_vista-security/how-do-i-block-an-email-address-on-my-windows-mail/145c737f-5311-47a4-a055-970ccd4ddadc?auth=1
The sender won't be informed about what WLM does after receiving the mail.
Bounces are generated by the mail server, not by the mail client. So you need to deactivate your mail address at your e-mail provider. Then, alas, you'll receive no mails at all.
I don't know of any mail provider that has the option of bouncing only specified senders. But maybe your mail provider has such. Their customer service can tell you.
windows live mail
blocked one email address
but still receiving mail from that id but in junk folder
what mail/ message will the sender be receiving
what can be done so that i do not receive mail from blocked id and the sender receives a bounced mail message