This morning the Windows Live Hotmail Technical Support blog posted the following message, only to take it down again sometime later in the day:

We are aware that some Hotmail customers are experiencing an issue seeing their folders with the new Windows Live Hotmail. The Microsoft engineering team is actively investigating and working on a solution.  In the meantime, we are asking customers to please switch their browser font settings to medium.  This is a temporary workaround. We apologize for the inconvenience and will notify you when the permanent solution is identified.

We’ve been following the “launch” of Windows Live Hotmail’s newest revision since last Thursday, when it was first announced, through Friday, with posts on the Hotmail and Windows Live Wire blogs, and their comments, and on to some sightings in the wild.  We still don’t have a new version here, and while checking every few minutes is getting a little old, a number of our readers have been reporting in that they’ve been upgraded.  We’ve also heard from readers who were surprised about the reports of problems, having no problems with the new version themselves.

The truth is, we don’t know what’s going on with Hotmail.  Obviously this release isn’t going as planned, but hopefully it will all get sorted out soon.