I've been having problems with Hotmail for a couple of months now, mostly that I don't receive messages. Now I have the same message you're seeing Eric. I'm beginning to really hate Hotmail, so maybe it's time for a change.
Hope so, I've always had problems with hotmail. I switched to yahoo, which seems to be better except it doesn't do too well with sending attachments. Hotmail's got that on yahoo for sure. I have an invite for a gmail account but haven't used it. I heard that it's better?
Errors such as this happen about once a month, randomly for me. Usually last for 1 or 2 days.
I have 50 gmail invites, if anyone wants one, PM me or something. Gmail is fast and simple and seems to be quite stable. You can also use it as a POP3 account (ie in Outlook or Outlook Express or Thunderbird, etc).