The Retail Detail is reporting, at about 2:07am, on a Linux box:
HotMail’s servers are down. It’s been going on for three hours now.
[EDIT] – Hotmail was finally working again sometime later in the morning.
Several years ago, HotMail was down for three solid weeks. So don’t hold your breath unless you’ve got some huge deal riding on your access.
Have you considered private E-Mail service yet? You should, if you have a website of your own. Paid E-Mail services have better up time rates.
If HotMail is down again (& I have not caught it) please report it in the comments.