Hi Jim :D
Just checked mine for ya. It appears to your side more than theres. In one simple statement, I'm sure i can explain it 'Hotmail is rubbish' lol. It's too 'big' if that makes sense.
Anyway to your issue, have you tried deleting your cookies or cache from your browser? What browser are you using? I'd suggest Firefox. I'd also suggest GMail, as it's exactly what you need in an webmail, small simple and no fussing. I had a simliar experience switching folders on hotmail a few years back, but that was just my browser.
Hope this helps.