Safari has a known compatibility problem with Microsoft hotmail. I gave up running hotmail via Safari, and shifted to Microsoft Entourage. I can also access my hotmail via Internet Explorer in Parallels.
Another option is to consider another 3rd party browser (firefox, mozilla, etc.)
Some helpful links:
http://crispierry.typepad.com/applep..._access_h.html
http://forums.mactalk.com.au/13/1689...e-hotmail.html