Microsoft has not been much help but I have figured out a pretty simple fix.
- Go to safari -> Preferences
- Select the advanced tab
- Click the checkbox that says "show develop menu in menu bar"
- The develop menu should now appear in your menu bar at the top of the screen between bookmarks and window.
- To use your hotmail or Microsoft live account go and login as you normally would.
- Go to Develop -> User Agent here you will find a list of different popular browsers. I think this basically will make Safari 4 work like the bowser you select from this list.
- Dont bother with using any of the internet explorer agents none of them work. Select the "Firefox 3.0.5 windows" version.
- Your page should reload and voila you can access your emails again.
This will allow you to access all of your emails and interact with your hotmail normally. Additionally you do not have to worry about changing this setting back to continue browsing as once you close your window Safari will go back to default.