How to fix iPad2 Mail and Contacts that stopped working?

One of our iPad2 devices, mail has stopped working and the settings application hangs when select Settings > Mail, Contacts, Calendars. When you actually select "Mail, Contacts, Calendars", the previous Settings page remains unchanged and the Settings application becomes un-responsive.

The iPad version is 5.0.1 (9A405).

There is a single Hotmail mail account defined called "Hotmail iPadsName" which syncs Mail, Contacts and Calendar. The hotmail email address is also the one used for the AppleID and iCloud.

iCloud options enabled are Contacts, Calendars, Reminders, Bookmarks, Photo Stream, Documents & Data, and Find My iPad. Storage & Backup > iClound Backup is on. I have been unable to change any of these settings as the iPad just keeps the circular motion "hour glass" going forever. The iCloud account did have an issue and couldn't be logged onto via https://www.icloud.com , but we resolved that after setting up the account on his iPod. The iPod has the same Settings > Mail, Contacts, Calendars as did the iPad2 that has stopped working.

Following the article http://www.apple.com/support/ipad/assistant/mail I have been unable to resolve this issue.

I've turned off all devices that connect to the same Hotmail mail account and set mail retreival on the other devices to manual as per article http://support.apple.com/kb/TS2621

I've reset the mail account password via the web as suggested in the article https://discussions.apple.com/thread/3123758?answerId=15840022022#15840022022 and attempted to launch Settings > Mail, Contacts, Calendars after cancelling the "Password Incorrect Enter the password for the Hotmail account "Hotmail Josh"", and again after entering the correct password.

Under Settings > Notifications, I've moved Calendar, Reminders, Messages, and Mail to "Not In Notification Center".

I've also completed a full backup and restore.

I'm wondering if alligatorstu's comment in another thread is somehow linked: "ONE of my Outlook calendar Exchange Appointments was corrupted. That's it. Delete it and you are 100% OK again." https://discussions.apple.com/thread/3429571?answerId=16768508022#16768508022 but it's Hotmail not exchange, but there are recurring appointments.

We have been unable to resolve the issue which started yesterday. Is there a way to restore just specific data such as application data, messages, and important application data? (ie. everything except Mail, Contacts, Calendars)?

Regards,

Anthony