My Windows Live (Hotmail) also stopped working last week. Eventually deleted the account.
"Windows Live" application is hidden inside \Windows folder on Q9h.
Find and run "WLMLauncer.lnk" file in \Windows folder. If you are using File Manager, enable option to view hidden files.
You can use this application to configure Sync Schedule, remove/reset Hotmail account etc.
To delete the account, Use Switch Accounts and then Reject Agreement.
Now to make things interesting, Microsoft has released a downloadable version of Windows Live for Windows Mobile last week.
http://wl.windowsmobile.com
Its a Hotmail only version e.g. does not include Live Messenger.
Is this the reason Windows Live stopped working? ...
Do we have to use new version?
I will check it out and post results.