Also...
You can try this: If you're using Windows Live Mail to get your HotMail...which is what I can see from your images...you can try closing Windows Live Mail and log into your HotMail account. You can then read and delete all your email from there...including anything in your Junk folders and Deleted Items folder. Basically, you'll be cleaning up your Hotmail account via the web server. Once this is done, log out of HotMail's web service, then try using your Windows Live Mail account, again, to see if you're still getting the same error.
It could be as simple as a single email from your HotMail account causing this issue.