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If it is asking for you or logon again it sounds like a corrupt cookie or at least an obsolete one that cannot remember your password properly.
While IE is closed, you might want to look at you cookie directory and delete (to recycle bin) any cookies with a hotmail.com suffix. The the next time you go to hotmail IE will be forced to download a newer cookie from hotmail.
I noticed Microsoft is good at completely disregarding what cached files people might have on their pc when they decide to make changes to their websites.
If it doesn't work you can restore the cookies back into place from the recycle bin.
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