Okay - I think I found the solution to my own question. Since the native email app "Hotmail" link was giving me so much trouble, I deleted the account and then set it up again as an exchange account with the following directions from windowslive help:
Instructions for default mail client
Account settings and their level of support will vary across Android phones. While the steps to configure push email with synced contacts and calendar will vary, we have found these steps to work across a number of phones:
1. Select Email client on phone.
2. Press menu and select Add account
3. Enter full Hotmail address: e.g.
username@hotmail.com or
username@live.com
4. Enter password
5. Select Manual setup
6. Select Exchange when prompted for ?What type of account is this??
7. Domain/Username, enter full Hotmail address: e.g.
username@hotmail.com. (Note: if the device only says ?Domain?, it should be left blank. If the device says ?Username?, then enter the full Hotmail address. On some devices, the Domain/Username may be pre-populated incorrectly and should be erased.
8. Type in password. (may already be filled in)
9. Server name. Enter: m.hotmail.com for server name. (Note: this field may be pre-populated incorrectly depending on device).
10. Make sure box Use secure connection (SSL) is checked.
11. Select Next
12. Select desired account options for inbox checking frequency, number of days to synchronize, send email by default, notifications and contacts/calendar sync. Select Next.
13. Depending on device you may be prompted for account color and account name (e.g. ?Hotmail?)
14. Select Next and your Hotmail is set-up and ready to go!
It appears to be working perfectly for me now... hopefully this helps someone else!
- AA