Folders not synchronizing in WLMD or Outlook

Hi

I've had WLMD for a while. All of a sudden I started getting sync errors.
So I uninstalled and installed the latest WLMD version 12.0.1606. Now I only
see 3 folders out of more than a dozen. I have un-installed and installed 3
times but no use.

I also tried Outlook 2003 with Outlook Connector. Same deal..even in Outlook
I see the same 3 folders. So it appears the issue is on Microsoft's side
unless both Outlook and WLMD use a common local setting.

I can login to the hotmail.com and use email successfully with all folders ok.

Any help will be appreciated.

Thanks in advance for your help.

Regards
Sanjay