i have the solution to your problems and it is the one i would use, since i actually have outlook and msn installed on the windows side (not by choice, i zapped my windows side with an upgrade off the cd, to see if i could forego another reinstall, and once i was finished, a suspicious copy of msn and outlook had appeared out of nowhere, i keep them since trillian is sometimes a bit weird, and because i can't seem to set up mozilla mail to work directly through hotmail (or bigmailbox.com for that matter) for my girlfriend to click mailto: urls easily)
Anyway, enough waffle! what's the big solution i hear you cry through all that internet generated static! Well, here it comes:
don't run outlook.
Simple.
Hotmail does not need you to run outlook to check it. Instead you can visit hotmail.com with mozilla and check your hotmail there nice and easy. Also remember to set mozilla not to accept 3rd party cookies, and to dispose of all cookies on program exit. These two features along with the fact that mozilla is infinitely tighter than outlook will enable your hotmail experience to be much more secure and risk free too.
This method also allows you to get your hotmail in non-windows operating systems too, something outlook really grudges.