I do not know how you use an e-mail client like mail to access hotmail because hotmail uses HTTP and xml to handle all request.
Hotmail has stop the access of using e-mail clients, so you have to use web mail for now on. I tried using hotwayd and Outlook Express with no good results.
You can thank spammers to make Hotmail change their ways.
I created a gmail account so I can use an e-mail client like Thunderbird or Mozilla Mail. Unfortunately it uses POP3 requests. I do not like POP3 servers because they are hard to store e-mails on the server. The gmail developers are working on IMAP, so I do not have to look for another e-mail service in the future.