Trouble with Outlook Express

After using it with no problems for months, all of a sudden I get this error message each time I try to do anything with OE: Access to that account was denied. Verify that your user name and password are correct.

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After using it with no problems for months, all of a sudden I get this error message each time I try to do anything with OE: Access to that account was denied. Verify that your user name and password are correct. The username & password on my hotmail account haven't changed in years and I have no trouble reading and sending mail there. Tried my best to verify as suggested but couldn't find anything in the Tools option to fix the thing. Any idea how to correct this problem?
 
I'm using XP and just installed IE8 hoping that that might solve this but no such luck.

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