Pops,
I assume from your post that you are using either the Office Live Basic (free)
subscription or a free hotmail account. If so, the error message means
exactly what it says. You need to upgrade your currently free email account
subscription to a paid level in order to use the Outlook Connector to
download your web email into Outlook.
Also, this is a BCM newsgroup and eventhough I replied, your query would be
more appropriate in the general Outlook area rather than here.
-THP