Yes Bruce, SP2 changes the version of WINDOWS MESSENGER that was there
before the SP2 update (Not MSN Messenger) and some of it's functions. The
same thing happened to me. The version/build version of WINDOWS MESSENGER
that SP2 installs is v4.7 (4.7.3000) - you can check this on the WM screen
by clicking on help and then about to see the version/build numbers. The
build version that I had before previous to the SP2 update that "did check"
for Hotmail was version 4.7 (4.7.2009).
So, I asked the same question here a few days ago and I got this good
response back from this MVP'er:
Jonathan Kay, Microsoft MVP - Windows Messenger/MSN Messenger Associate
Expert...
"Actually, the Windows Messenger version within SP2 does not have support
for Add-ins which is required for MSN support within Windows Messenger. As
such, in order to get this functionality back, you'll either need to
downgrade to the previous version of Windows Messenger
(
http://www.microsoft.com/windows/messenger/download.asp) or use MSN
Messenger instead (
http://messenger.msn.com/Download)."
I followed Jonathan's advice, went to the first link and got the older
version of WINDOWS Messenger, and everything is working fine and the Hotmail
is once again being checked. Give it a try and hopefully you'll get
straightened out.