I fixed it by removing Ghostery Hope fully i can find a option to disable it on hotmail

I had the same problem. Clear that MS has added a req'mt to track to use msn/live/hotmail emails, as my other email accts were all frozen except for signing in/out. What I did was allow one tracker 'microsoft atlas' and I have full functionality. Bloody hassle and completely against the 'opt-in' requirements of EU's data protection regulations. But then MS/FB/Google et al don't give a damn about data privacy....  ; (

An update, reported this issue w/ MS who relayed they were aware of the issue and working on it. Not expecting much, but after trying daily, MS cleaned up the issue, can now use Ghostery to block all trackers and hotmail/msn/live email accounts are now functional.