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I have the same issue and this is the error i get:

Unable to send or receive messages for the Hotmail (DressyDung) account. To send and receive messages in your Hotmail account, go to http://hotmail.live.com on the Web, or try again later. To get help from Windows Live Customer Support, go to http://support.live.com and click Windows Live Mail in the list of services.

Subject 'Commission'
Windows Live Mail Error ID: 0x800C0014

I restarted my computer, verified it had the correct password and still nothing.  i can receive but not send.

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