Till 25-09-2016, I have gone through a lot of readings for the problem I could not login Live Mail 2011 app for my Hotmail account - denied. However, I use the password login Hotmail app or Outlook Mail app successfully.
I tried adding new account, etc. without any good.
Today I tried change my password from Outlook Mail app, it was successfully, by means re-login either Outlook Mail app or/and Hotmail app. But for Live Mail 2011 app - the new password did not work out, that still says incorrect email address or password while trying login.
One thing recorded here: I added email accounts on Samsung Galaxy s6 mobile phone successfully for Hotmail (with the new password), iinet.net.au email, and Gmail. Afterwards I tried to login Live Mail app for Hotmail account from my PC, that again denied - incorrect email address or password. The hours and hours of time on reading, trying, those were just wasted yet without success. Microsoft Windows 10 is really bad in collation with Live Mail 2011 app. I've been thinking back to Win 7 for resolving the issue, but since I read a real article/case that someone said that he returned to Win7 from Win 10 for resolving the same issue but did not resolve it. This stopped me to back to Windows 7.
The Live Mail 2011 app conflicts Windows 10 that made me really unhappy and powerless.