Perhaps uninstall and reinstall the app? If you also use a Gmail account, Gmail can also handle separate MSN accounts like Live and Hotmail.
I tried uninstalling and reinstalling Outlook, same thing. I try to open an attachment and it says "Downloading file", followed by "Failed to download". It does the same for pictures or files.
It used to work fine. Very frustrating.
I used to use Outlook now I use gmail and imported my Outlook account into it. That seems to work better for me.
It always worked fine and then just stopped working. I'm curious as to why.
Anybody have an idea?