Microsoft is slowly releasing a new version Windows Live Hotmail this week, though, as LiveSide.net reports, many users are having problems with the new design and want Microsoft to revert back to the old layout. We have been looking at the new version of Hotmail for most of the morning and have not seen any problems with it so far. The new layout will take some getting used to, but overall, it is simpler and faster than the old Hotmail and Microsoft has significantly increased the storage limit.
The new version of Hotmail is being rolled out slowly and most users at not able to access it just yet. It is important to note that you can choose if you want to try the new interface and that you can switch back to the classic version at any time. We tested the new version in both Internet Explorer and Firefox and it worked just as advertised.
The new look is a lot cleaner than the old Hotmail, with a lot of white space. Microsoft refers to it as being "more like a repainted room than a remodeled house." As with the old version, you can choose between different layouts and themes. According to Microsoft, this new version is also 70% faster for users on broadband connections and 54% faster for those still using dial-up connections. While we did not do any scientific tests, the new design does indeed feel a lot faster than the old Hotmail.
This new version also now includes significantly more storage space (5GB to start and then 500MB more per month every time you hit the limit). Microsoft is also integrating more Live Messenger functions into this new version. While it is not quite Gmail Chat yet, you can already change your presence in Hotmail. Over time, Microsoft is planning to add more features to this.
Overall, we really liked this new version of Hotmail. It does not (yet?) include a lot of new functionality, but it does give Microsoft a very well designed scaffold to use once it decides to add more functions in the future.

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Some basic research goes a long way you know?:
1.-Live Hotmail has had 5gb for quite a while. the only addition is that it will grow 500mb a month if you hit 90%. this can be every single month. the only condition is still not more than 1gb download/upload a day.just like in gmail.
2.-Live Mail Chat is a feature being rolled in two different ways and right now it is only active partly.
3.-It integrates with the new Live Calendar, got better Live ID auth, better security, better spam control, better user ID management, new improved contact management with the release.
There. i don`t mind covering up for your laziness or apathy.
The newer version is cosmetic, at best. They have eliminated some basic functions such as readily available access to your Contacts (so that you may add new or delete old)and the function of checking for new email. You cannot open emails with attachments over 500kb. You do not receive emails from people not in your safe list. If they are in your list of contacts but not in your safe list, they get bounced back.
I have had MSN email since 2001 and I am very disappointed in the changes.
@bridget: what?. then yours is not working right. i would jump back to the old version until it gets fixed on your bay (server)
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I am in China, I opened my hotmail, but I didn't see any changes. Maybe new looks only available in U.S .
MS must make choice for everyone.
A enforce way will put the clients go aways to competitor
Hotmail is getting a little useful now. Way better interface compared before and more space.
Never used hotmail, and i am not planning to get one. i am so happy with my gmail...
@MGA
Man, you missed much! Good looking UI, REAL SUPPORT and a working messenger :-p
@Jackie:
The upgrade is being done automatically to all Live Hotmail accounts. If you dont see any changes in your account now, it might be on the next batch of servers.