Hotmail messages being received into local inbox instead o..

I have noticed this problem last night. All of my Hotmail messages are
suddenly being received into the local inbox in Entourage instead of
the designated Hotmail inbox folder. Also, sent messages from Hotmail
are going into the deleted items folder. If I try to move messages
into their correct folder, whether received or sent, the Hotmail
folders do not keep the messages and they get sent into the local
deleted items folder. If messages from the local inbox are moved to
the hotmail inbox manually, not only do they not stay there and get put
into the local deleted items but when Entourage verifies for new mail
it redownloads those same messages back to the local inbox folder. Has
anyone had this problem with their Hotmail in the past 48 hours? I
have written to Hotmail about this problem and am waiting for a
response.

Thanks for anyone's insight...

Francia