... you grant Microsoft permission to (1) use, copy, distribute, transmit, publicly display, publicly perform, reproduce, edit, modify, translate and reformat your Submission, each in connection with the MSN Web Sites, and (2) sublicense these rights, to the maximum extent permitted by applicable law. Microsoft will not pay you for your Submission. Microsoft may remove your Submission at any time. For each Submission, you represent that you have all rights necessary for you to make the grants in this section. To the maximum extent permitted by applicable law, Microsoft may monitor your e-mail, or other electronic communications and may disclose such information in the event it has a good faith reason to believe it is necessary for purposes of ensuring your compliance with this Agreement, and protecting the rights, property, and interests of the Microsoft Parties or any customer of a Microsoft Party.
To simplify: "... you grant Microsoft permission to (1) use ... your Submission (email and its contents) ... and (2) sunlicense these rights to the maximum extent ...."
don't overlook, "Microsoft will not pay you for your ... (content)."
Of course the HOTMAIL® service is "free" — REM: You get what you pay for, and there ain't no free lunch.
... happy mailings,
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