I'm having the EXACT same problem. Will try Robear's suggestion, but
my hotel connection won't allow Windows validation right now, so I
can't download the fix

I'll try to follow up later...

PA Bear wrote:
Authentication fails when you use Outlook or Outlook Express to try to log
on to a HTTP-based mail server if you use Internet Explorer version 7.0:
http://support.microsoft.com/kb/904942

Otherwise, the problem's on MSN/Hotmail's end. Until they automagically
clear up (hours/days/weeks...), access the account at www.hotmail.com.
--
~Robear Dyer (PA Bear)
MS MVP-Windows (IE, OE, Security, Shell/User)


Jesse wrote:
Most of the time, when I start Outlook Express, I get the following
message:

An unknown error has occurred
Configuration:
Account: Hotmail
Server: http://services.msn.com/svcs/hotmail/httpmail.asp
User name:
Protocol: HTTPMail
Port: 0
Secure(SSL): 0
Code: 80004005

I dismiss the error message, and OE seems to continue running normally.
Any
ideas what this might be about?

I'm running OE6, and IE7. I have a paid hotmail account.