Apply a message rule

Is their a way to apply a rule to sort email to an established folder?  I recently began corresponding with a new business contact.  The level of activity of email warranted setting up a folder and creating a rule to sort messages from this contact into the folder.  I was hoping to apply the rule to existing messages in my Inbox so that I would not have to manually seek out pre-existing messages from my new business contact.  In other words have Hotmail / Windows Live do the work.  It does not appear that I cannot; it will only work on future messages from my new business contact.  Perhaps I am missing something?  Any suggestions?