If this has just happened, it might be a server issue at hotmail's end. try it again in a few hours time.
If you have had the problem for a while, especially if you've only just setup OE to use the hotmail account, check the settings you have entered - password, account name, server names, etc. It's surprising how easy it is to do something dumb like entering one character wrong.
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Ahh, just seen this thread :
http://www.cableforum.co.uk/board/sh...ad.php?t=35523
Might all be related.