Cant get hotmail working AGAIN in Outlook 2007

[RightPaddock]

On Nov 14 I got an email from MS viz

Hello,
In the next few weeks we’ll be making some updates that will impact your @outlook.com, @hotmail, @live, or @msn email account. Those changes will prevent your email from getting delivered to the Outlook desktop application you use. When you notice that you stop receiving messages, simply follow these two steps:

For Outlook 2007 customers:
1. Remove your email account from your Outlook 2007 desktop application


2. Re-add your email account to your Outlook 2007 desktop application

Sure enough yesterday mail stopped flowing to/from my hotmail account in my desktop Outlook 2007. So I did the above 2 steps, but the mail is still not arriving or being sent.

One thing I noticed is that the 'new' hotmail account in Outlook 2007 doesn't have a data file and I can't figure out how to create one. But I am not sure I had one before. I move the mails I want to keep to a separate "Storage" PST file that's not hooked to an email account.

I can access the mail online - but I really prefer to have it in outlook 2007 so that I can file things locally etc. I don't like relying on the internet for storage as I have bucket-loads of local disk space.

TIA RP