I have been happily accessing Hotmail email via its Webdav interface and Outlook for a long time now. I know that in the fall of last year Microsoft/MSN announced the end of this access for "free" accounts giving the reason that spammers were abusing the service. In January(February?) they announced that older "free" accounts would be grandfathered and continue to be able to use this access.
Suddenly this morning - this access is no longer possible. I get "unauthorized" error. I don't know if this is MSN reneging, a temporary problem or a result of the "new" Passport system. I can find no news, no newsgroup activity, nothing mentioning this at all.
OK -- it seems the problem has gone away -- obviously a temporary glitch at the server end.