Does it work with the User agent switcher addon set to IE7? It could be as slpime as hotmail sniffing your browser as suggested and just pushing you to classic even if the other version would work fine. I’d test, but I don’t have a hotmail address.
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The Backboard Chronicles 
Does it work with the User agent switcher addon set to IE7? It could be as slpime as hotmail sniffing your browser as suggested and just pushing you to classic even if the other version would work fine. I’d test, but I don’t have a hotmail address.