Abhishek... this came today from HOTMAIL.. this may well water the thread.. if so,
feel free to delete it: I've copied and pasted this from the Newsletter.
Important updates for using Hotmail with mail programs :
Windows Live Newsletter:
You are receiving this note because you have connected to Hotmail from devices such as smartphones or programs like Mac Mail and Mozilla Thunderbird. These smartphones and programs often include an option that automatically deletes messages from Hotmail after they are downloaded (they often use the "POP3" protocol). Because this option is sometimes selected accidentally, we've made some updates to Hotmail to make sure those messages aren't deleted automatically unless you tell us otherwise.
When we detect that another program wants to delete Hotmail messages, instead of just deleting them, we will move them into a temporary POP folder on Sign In
for safe keeping until you tell us what you'd like to do.
What do you need to do?
Depending on how you'd like messages to show up when you access Hotmail on the web, please take one of the following actions:
If you want to delete messages from the web version of Hotmail after they are downloaded to your program, sign in to Sign In
and choose "POP and deleting downloaded messages" on the Options page.
If you'd like to see your messages on both your Hotmail inbox at Sign In
and on your smartphone or program, open the program that's downloading the messages and go to its POP settings. Look for a "delete messages from the server" option and turn it off.
Please note that this does not affect smartphones or programs that connect to Hotmail in other ways (e.g. smartphones with Exchange ActiveSync, Microsoft Outlook with Outlook Hotmail Connector, or Windows Live Mail). Questions?
Visit the Windows Live Solution Center
Thank you for using Windows Live Hotmail.