Outgoing Hotmail Windows Live doesn't work anymore

I have a couple of Hotmail accounts set up in Mail on 10.6.8. They have worked fine for a long time, but since the last few days, outgoing mail does not work anymore. Only incoming mail works. I have tried to find out if Hotmail/Windows Live have changed anything regarding their POP mail, but have found nothing. Does anyone else have the same problem?

Thank you Csound1 for your suggestions. In the end, I had to call a senior Apple care tech to solve it.
So for anyone else having this problem, here's what we did:
To fix outgoing Hotmail server problems,
go to System Preferences/Network
Select Ethernet and Advanced
DNS tab
Add 8.8.8.8 and 8.8.4.4 to DNS servers in left column.
There was something wrong in the settings with the DNS server that I get when set to automatic. I called Verizon and they could not give me another DBNS server or help me. So I'm now using Googles (8.8.8.8).
Go to keychain access
Search for the hotmail address
Delete the lines that says smtp.live.com - Internet password

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