Mac Mail error when viewing Hotmail email - please help.

Question

When Hotmail is viewed via Mac Mail, the To: field displays the recipient’s name & Hotmail address. There is a serious problem with my incoming Hotmail … instead of displaying my name and Hotmail email address it displays my friend’s name (initials are RB) alongside my Hotmail email address ... for every Hotmail email that is sent to me no matter who emails me.  My contact/address book entries for my name and my friend are correct in Mac Address Book and Hotmail Contacts. Very strange.
Mac Mail seems to be adding recipient name to the To:  field of all of my Hotmail emails & putting in the wrong name next to my email address!  I say this because the official www.hotmail.com site only displays a recipient email address in the To:  field (no name appears).  This error is only happening in Mac Mail with my Hotmail emails (not happening with my Gmail and Yahoo emails).
How/why is a wrong name/my friend's name displayed next to my email address in every Hotmail message I view in Mac Mail?
This error is only occurring in incoming Hotmail messages addressed to me.  Emails that I send using my Hotmail show my name & email address correctly in the From field.
I am very concerned about this since my Hotmail account has been my primary email address for over ten years and appears on my business cards, etc.   I am trying to avoid the hassle of creating another primary email elsewhere. 
Thanks in advance for your help in resolving this problem.
Here is some background information:
Using Mac OS X Version 10.7.5.
My Hotmail address ends with @msn.com … not Hotmail.com.

Answer 1

I don't think this is a Mail vs. GoDaddy issue. Rather, it looks like a DNS issue. If Mail can connect to the server but cannot log into your mail account for some reason, it'll ask for your password, regardless of whether that's really the problem or not. It could be that mail.yourdomain.com isn't resolving to the right IP address for some reason, for example.
Although unlikely in this case, it could also be a Keychain issue. Open Keychain Access, choose Keychain First Aid from the application menu, and proceed to repair the Keychain. If that doesn't work, you may try removing the password entry from the Keychain, and let Mail create it again.
Also, open Mail Help and read the article titled Mail keeps asking for my keychain password, in case there is something there that applies to you. There is a related article titled My password is not saved that you should ignore, as the last suggestion provided there (deleting the mail account) is wrong and could cause irretrievable data loss if this is not an IMAP-type account.