Windows Live Mail Error 0x80048820 Update

Update on the above: I've managed to set up a new account which appears to receive new emails, using the original account (NOT email address) name: http://oe.msn.msnmail.hotmail.com/cgi-bin/hmdata. (Don't ask me why, but this was the original name for my account). Sending seems to work (sending to myself), but I get an error message - still need to check that out. However, I am unable to see any of the new folders I created on the web when I emptied my inbox. The only folders I see are the default folders (Inbox,Drafts, Junk, Sent, Deleted). Looks like I can move the contents of the new folders all back to Inbox and sync to receive them as new emails, although that will be really tedious! I set up the new account by manually entering the pop3.live.com and smtp.live.com server info. Whenever I try to use my actual email account address, I end up with an account which wants to download the folders but fails as described in the second error message abpve. I'm still looking for a good solution.