How to reset Hotmail password for Mail

If you are getting a message "out of the blue" that you should provide a new password for a Mail account (when you have not changed it), you should ignore that message and dismiss the complaint.

The reason you get that message in that circumstance is that Mail cannot tell the difference between any of the several different problems that cause "server is not responding". The only one it can do anything about is the password, so it [in error] prompts you to enter it again.

You need to go to Hotmail.com to change a mail account's password before you can change it in Mail.