Microsoft released Microsoft Office Outlook Connector 12.1 beta, that you can use Microsoft Office Outlook 2003 or Microsoft Office Outlook 2007 to access and manage your Microsoft Windows Live Hotmail or Microsoft Office Live Mail accounts, including e-mail messages, contacts and calendars for free! In this regard, the Outlook Live Connector Beta 12.1 will synchronize not only Windows Live Hotmail email data and contacts for free, as well as the calendar (for Premium users), but also the content on the Windows Live Calendar Beta service. However, there are a few problems.
“There is a known issue with non-Western European character sets that can cause this error, and will be fixed in an upcoming Beta 2 release of the OLC. For now, avoid categorizing/flagging your mails with these character sets. If you are already in a state where you get the 4102 error, the easiest way to fix it is to re-sync your mailbox by removing your account and then re-adding it,” revealed Kristel Leow, Software Development Engineer in Test, Microsoft Office Outlook.
This can occur when the OLC is installed in your default profile, so the account is still present in Outlook but the OLC components are not. You can fix this by going into the Mail control panel and removing the Hotmail information manually. See the above link for instructions on using the Mail control panel.