I have the released version of the Outlook Hotmail connector (14.0.4760.1000)
installed with the RTM version of Outlook 2010 (also 14.0.4760.1000).
Whenever I perform Send/Receive, Outlook appears to synchronize everything:
sent mail is dispatched, mail in my inbox and other folders appears—or
disappears—as expected. However, a “Send/Receive error” always appears in
Outlook’s status bar, and the following always appears on the Errors tab of
the Send/Receive Progress dialog:

“Task ‘xxxxxxx@msn.com’ reported error (0x80004005): ‘There is an error
synchronizing your mail account. Please verify your account is configured
correctly by first accessing your mail on the web. Error: 4203.’”

I have seen this behavior on multiple configurations (all Windows 7):
• 32-bit Outlook and 32-bit Hotmail Connector with 32-bit OS
• 32-bit Outlook and 32-bit Hotmail Connector with 64-bit OS
• 64-bit Outlook and 64-bit Hotmail Connector with 64-bit OS

In each case, I have removed and re-added my Hotmail account as well as
uninstalling and reinstalling the Hotmail Connector. The same error—ending in
“Error: 4203”—always appears.

I’ve used the Hotmail Connector without a problem since it was first
released many years ago with every version of Outlook that supported it, most
recently version 12 with Outlook 2007 until Outlook 2010 reached RTM. (I did
not install any pre-RTM versions of any Office 2010 applications.)