Try the following to correct the problem. It worked for me.
To continue accessing your MSN email using Outlook XP or Outlook Express,
follow these easy steps:
To receive your MSN email in Outlook XP
Click Start, select Settings, then click Control Panel (or click Start, then
click Control Panel in Windows XP).
Double-click the Mail icon (click Other Control Panel Options if the Mail
icon is not visible).
Click Email Accounts.
Select Add a new email account.
Click Next.
Select HTTP.
Click Next.
Type the following setting information:
In the Your Name box, type your name as you want it to appear to recipients.
In the Email Address box, type your email address; for example,
(e-mail address removed). Note that the HTTP Mail Service Provider setting
automatically switches to MSN from Hotmail when you exit the email address
box.
In the HTTP Mail Service Provider box, select MSN if this is not already
selected.
In the User Name box, type your MSN account name.
In the Password box, enter your password if you want to save it.
Check the Remember password box if you want to have your password saved.
DO NOT check Log on using Secure Password Authentication (SPA).
Click OK.
Click Next.
Click Finish.
