I have tested this solution About WLM 2011 on Windows 7 (Licensed Version)
Just export all emails folders and accounts in one empty folder
then just delete the affected account which is not sending and receiving mails from Hotmail
Then create that email id account again under WLM.
Now ... if your email account does not have huge data then let WLM download all folders and emails.
But If you have huge data in hotmail account hust stop sync with hotmail account for the recreated id..If needed exit wlm or disconnect INTERNET.
Now the exported data will save downloading time and bandwidth.
Exported data can be imported back from hard disk backup(exported earlier ) for the concerned recreated hotmail id.
Just remember that - This is solution but not identification /detection of problem.
this is what the pop up says:
Unable to send or receive messages for the Hotmail (ellienc) account. The folder name is invalid or not allowed.
Server Error: 4201
Server Response: Folder name is disallowed
Server: 'http://mail.services.live.com/DeltaSync_v2.0.0/Sync.aspx'
Windows Live Mail Error ID: 0x8DE00002
I can go to hotmail.com and access it, I know my password, that is not the problem. It happens when I try to open my windows live-where you can have all of your email delivered to one spot-like outlook express sort of. Hope this clarifies it a bit. Not been hacked or anything. It is just an aggravation basically. I got used to one mail client and having everything download in one spot.