After suffering for what seemed an eternity with slow facebooking and windows live hotmail, reformatting, running malware and virus scans, registry fixes, the works!... OMG I finally found a solution!
People having this problem will understand the PAIN and FRUSTRATION!
As you know when clicking on any of the left hand side tabs (Inbox, junk, sent, archive, deleted etc) a yellow band down the bottom will say loading, before displaying 'We can't connect to windows live hotmail right now, please try again later' up the top. That's assuming the bloody WLH or facebook sites load at all!
Go to Tools > Internet Options > Connections > LAN Settings and then uncheck the 'Automatically detect settings' box. Problem solved!!!! Well for me anyway. I hope this helps,