The incoming server needs to be localhost because this is the virtual 
mail server that the extension sets up on your computer. Thunderbird 
communicates with this server as though it was a standard POP server. 
The extension takes these POP protocol communications and transforms 
them into the protocol used by the Hotmail HTTP server. Thunderbird 
cannot communicate directly with the Hotmail server, if it could there 
would be no need for the extensions.
Your sending of password did not succeed error could be due to several 
things. Check that the options in the extension settings correspond with 
the settings on your Hotmail web pages. You have options for "Hotmail 
(Old website)", "WebDav", and "Hotmail Live (New Website). WebDav will 
only work with old or paid for Hotmail accounts, but is the best one to 
use if it works for you. The other two options depend on the website and 
extension options being set to matching choices and are at the mercy of 
any change that Hotmail makes to its website. Hotmail recently added an 
information page before you log in, this broke the extensions for many 
people until they had visited the Hotmail site and dismissed this page.

gstrat79 wrote:
> I hope someone can help. I just set up the Web Mail extension with the
> Hotmail component and I followed the directions on the Webmail
> extension site. I set up my Hotmail account as both an email account
> and a Web Mail account. Each way when I click on the "Get Mail" button
> in Thunderbird and it asks me for my Hotmail password I get and Alert
> message that reads, "Sending of password did not succeed. Mail server
> localhost responded: negative vibes from "my Hotmail address."  I
> typed the password correctly several times and it never works. Why do
> I put "localhost" as the incoming server? The Hotmail incoming server
> is an http address. I've tried to put the http address in and it
> doesn't work. I hope someone can help. It shouldn't be this difficult
> to set up and email account. Thank you.
>
> >   
> ------------------------------------------------------------------------
>
>
> No virus found in this incoming message.
> Checked by AVG - http://www.avg.com 
> Version: 8.0.176 / Virus Database: 270.9.15/1834 - Release Date: 12/6/2008 
> 4:55 PM
>
>   

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