In a recent update to Hotmail, Microsoft enabled the use of HTTPS (a protocol that allows your computer to communicate with a remote server securely) for all connections from a browser to your Hotmail/Windows Live service. This feature was optional for all users employing the hotmail service for their messaging needs.
Updates to Outlook Hotmail Connector and Windows Live Mail bring a more secure connection to Microsoft's servers from your computer. I've always recommended webmail users to enable this optional safeguard, which is now standard for all Hotmail users.
This means that from now on all connections to your Hotmail account from your browser, Outlook Connector, and Windows Live Mail are secured. This is a phenomenal feature if you use public hotspots to access your email.
I think this is a move in the right direction as most users don't know how vulnerable they are when connected to public wireless networks.