During the logon, Hotmail establishes a secure connection with your browser, which is used to transfer your password. Connection problems typically arise when A4Proxy attempts to establish a secure connection via a proxy which doesn’t support secure protocol. Please look at the proxy list (Proxy Check tab), scroll the table to the right to see the HTTPS column. ‘X’ in this column indicates that the proxy supports Secure HTTP protocol. Make sure that the proxy selected as default does have an X in this column.
In order to test proxies for HTTPS support, you should enable the option “Check for FTP/HTTPS support on reset data” (Options menu, Special Options dialog box in A4Proxy) and enable the “Reset Data” option on the Proxy Check tab before checking proxies.
It is also important that you enter the same proxy settings (127.0.0.1 port 80, redirecting requests from your browser to A4Proxy) in all three protocols in the proxy settings of your browser – i.e. in HTTP, Secure HTTP and FTP.