My initial problem came when I was unable to send messages via hotmail/outlook. They are pooling in my outbox and the error box comes up saying, " You have exceeded your storage limit on your 'server' and must move stored(?)items to local folders.
I am so computer illerate and I am not sure what is needed of me to resolve this problem. I really need to be baby stepped through this process. Thanks!

hotmail account have a limit of 2 meg, empty some of the emails in the mail account and you should be sorted

unless you clean out your Hotmail Inbox, deleted itmes and and Personally created folders you'll always be exceeding your Limit.

Those E-mail address get mail from every SPAM Bot (mail server that all they do is send mail to and E-mail server willing to accept it).

It's not your address, it's the service. FREE E-mail from any where; Hotmail, yahoo mail, Easy Mail, etc - all are not great when it comes to spaming. Which contributes to the Storage Limit being exceeded. So, keep it clean, regularly. What a pain in the Arse.