It finally looks like my Hotmail address won't accept and receive mail now via WLM, unless I use the IMAP settings.
However, it's not exactly a problem. But when I send an email via my Hotmail address, using WLM, the sent email never stores in the Hotmail 'sent' folder, but rather the 'storage' folder.... Anyway to change it? I've Googled, but didn't really see anything.