email verification issue for outlook connector using domains.live.com with custom domain

I've setup a NFP client using domain.live.com for email hosting of their domain.
There is  three users, each with their own accounts, all configured to work with Outlook 2010 using the outlook/hotmail connector. All was working fine until recently.

They try to send an email and now get the following prompt:

"You must type the characters in the image to send e-mail messages from (my e-mail address here). This verification prevents automated programs from sending spam. If you cancel this dialog box, any messages in your Outlook box for this account will not be sent."

The image doesn't load. Neither does the audio if I try that.

They can't send emails now unless I direct them to use the webmail link mail.theirdomain.org (or outlook.com).

Please help?!?
LVL 8
Reece DoddsAsked:
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Reece DoddsConnect With a Mentor Author Commented:
That was the exact procedure I followed to set the accounts up in the first place.
I ended up switching to using pop3.live.com and smtp.live.com and then Publishing the Calendar that needed to be shared.
It seems to be MUCH more reliable this way.
Thanks anyway.
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Blue Street TechConnect With a Mentor Last KnightsCommented:
Hi reecem27,

This verification windows does not belong to Outlook.

Do you still receive the CAPTCHA text when you send a message through hotmail website. I cannot confirm whether this is from Live account. You may connect to support for live account to confirm it.

See if this sheds some light on your situation: http://www.webdevelopersnotes.com/blog/windows-live-email-account-verification/

Let me know how it goes. Thanks!
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Blue Street TechLast KnightsCommented:
Just checking in...any update on this?
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Reece DoddsAuthor Commented:
I know it doesn't belong to Outlook, since it's only appearing after the installation of the Outlook Hotmail Connector.

I've tried finding a verification link in Outlook.com, but am unsure if what I've done has made any difference.

What if Outlook were setup to use the POP/SMTP settings rather than the Hotmail Connector?

Would I still be likely to see this validation message?
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Blue Street TechConnect With a Mentor Last KnightsCommented:
Have you followed this for the setup: http://support.microsoft.com/kb/2735989 and http://office.microsoft.com/en-us/outlook-help/microsoft-office-outlook-hotmail-connector-overview-HA010222518.aspx ?

Keep in mind, by using Hotmail Connector to connect to Outlook.com you gain the benefits of syncing Email, Calendar & Contacts, which you wouldn't if you just set it up as a POP/SMTP account.

Can you duplicate this on other PCs?
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Blue Street TechLast KnightsCommented:
Any updates?
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Reece DoddsAuthor Commented:
Thanks for the help and suggestions.  There was no real positive fix for this (not even offered by MS Tech Support), so I found an alternative that seems to work fine.
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