Something is preventing wpmu from sending emails to hotmail.
I got all the dns stuff sorted, everything fixed (dnsstuff.com has all pass for my domain). I tested the mail server by sending a mail from my hotmail account, it arrived almost instantly. I then replied from my domain's email to hotmail and it got into the inbox just fine.
But then I tried to change my test blog's email to the hotmail account and the email never got there, not even in the spam folder. I asked a friend to register using hotmail account and he didnt get a mail either, not even to the spam folder.
I am using stmp mail thing, and qmail (on fedora core6). What could be happening? Since I did receive a mail when I sent it manually, why isnt wpmu sending the mails to hotmail?