Also check this for solution
• You are not connected to the Internet when you tried to synchronize your account
• Your proxy settings are not set.
• A third-party firewall is blocking Windows Live Mail from connecting to the Internet
• You do not have the latest Microsoft updates installed on your computer.
What to do?
I. Repair Internet Connection:
a) Click Start and click Run
b) Type ncpa.cpl and then press ENTER
c) Right-click your Internet connection icon
In Windows XP, click on Repair
In Windows Vista and in Windows 7, click on Diagnose
d) Follow the on-screen instructions.
e) Try installing Windows Live programs through http://download.live.com/
f) If your Internet connection still does not work, contact your Internet Service provider.