I do not have parental controls set on any of my Hotmail accounts but when my family uses Hotmail through MSN, and they address a new e-mail, they get this error:
"You're only able to e-mail approved contacts, so some of the recepients have been removed from your message."
It will not allow them to add an e-mail to the address book. Is this some sort of Communist system Windows Live runs? Or is it a MicroSoft Vista hangup? I do not have any issues with new e-mail addresses when I use Outlook on my Vista user logon.