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I also installed the hotmail app but removed my account from the default app. The hotmail app is working. Following your lead, I added my account back to the default app. They are both working but the hotmail app is now getting the mail a good hour after the default app. Strange. It was quite fast before. Now I'm going to remove the hotmail app and see if the default app continues to work.
Hotmail support had told me they made some changes to my account right around the time that I installed the app, so cause and effect isn't totally clear.
