I have same issue.  It was working with outlook 2003 for a good 3-4 months
(using Windows Live hotmail) and then it stopped downloading emails.  
Send/receive takes forever, still sends but no incoming.
I read other threads and disabled antivirus-no use.  I also tried deleting
and re-adding account and it does do an initial synch and download but no
refresh/update.

the error it gives says: "There is an error synchronizing your mail account.
Please verify your account has been configured correctly by first accessing
your mail on the web.
Error: 4402. Client. Client FolderId 7e936776-ed4e-11dc-ab7d-001a6b2444ad is
not found in the request. "

anyway you can help please?