I am a bit confused. Your last post gives me the feeling that your hotmail is not working intermittently
1)What is Y! ZD version /OS ?
(I tried to reply to a thread I was follwing on this subject matter, but it kept prompting me to login, over and over).
2)Have you ever been able to configure hotmail account in Y! ZD ?
3) Have you seen Adding Hotmail Account always fails - WHY? What to do? ?
4) There should not be any problem in POP3 access in the stable version of Y! ZD. Bug 35162 – allow POP for live mail accounts
5) If problem persists, please look into desktop.log (location depends on OS). You may also refer FAQ for it.