Thanks to our reader James for letting us know about some current (but temporary) system issues at Hotmail - details at https://status.live.com/detail/Hotmail

UPDATE:

As of now (10:30 on Jan 9), Hotmail is still having issues.  Problems seem to be isolated to mobile clients using Activesync.

UPDATE:

MS is now comitting to an update by 11:20PM (not sure which timezone that's in). 

Cloud services are great, except when they're not!