From the Outlook Blog:
In our continued effort to improve the quality of the connection between Windows Live Hotmail and Microsoft Outlook, we have released an update for the Outlook Hotmail Connector.
The main addition in this update is the support of the HTTPS protocol for all communication between Microsoft Outlook and Windows Live Hotmail, Calendar, and Contacts. Using a connection with HTTPS, helps you be even more confident that your account is safer from hijackers, and that your private information remains private. HTTPS is a standard for sensitive Internet content, and you'll find it commonly used by banks, online merchants, and email providers such as Hotmail. HTTPS uses a certificate on the server to make sure that your computer is communicating with the intended server.
To start to use HTTPS with your Hotmail account, install the latest version of Outlook Hotmail Connector. No other changes are required in Outlook or on the Windows Live site.
Additionally, this update addresses reliability issues reported by users like you.
As a side note, we have listened to your feedback on our version terminology - we previously referred to each release with an incremental version such as "14.1" or "14.2". However, the version information for the Outlook Hotmail Connector continued to use a 14.0.XXXX.YYYY version system. Beginning with this release, we'll refer to each release exclusively by its version number found in the "About Outlook Hotmail Connector" dialog box. The version number for this update is 14.0.6106.5001. To determine which version is installed on your computer, see the end of this article.
Continued : http://blogs.office.com/b/microsoft-outlook/archive/2011/07/07/https-support-added-to-outlook-hotmail-connector.aspx
The above also includes:
• An overview of the changes in the update
• Installing Outlook Hotmail Connector
• How to verify the version that is installed
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