It actually could just be a net timeout..
But I said It was not a Vm Problem for the obvious reason that Hotmail Is Ran By Microsoft... Which Every Connection in the world CAN connect too I believe, If you cant connect to microsoft In general then Something's Up
Im no Hotmail Expert But this Could be a Simple FF or IE error...
Which are you using, Clear cache etc. try again
Then Ill start again with resolving
