I just received this from MSN, it may be the problem??
Dear MSN Member,
Recently, Hotmail® announced that in order to improve customer experience
and reduce spam and junk e-mail abuse on MSN® services, Hotmail will no
longer allow new e-mail accounts to be accessed via Microsoft® Office
Outlook® and Outlook Express.
We are pleased to inform you that because you are an existing and valued
customer, at this time your current Hotmail and MSN account(s) are exempt
from this restriction and you will be able to continue enjoying access to
those accounts from Outlook or Outlook Express. However, any new Hotmail or
MSN accounts you create will not be accessible via Outlook or Outlook Express.