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Re: synced with Hotmail, contacts now deleted.
In the screen print, it shows the contents of your outlook's address book (and that is empty).
Can you try to go into the hotmail account (maybe using outlook itself) and see the contacts in the hotmail account? I'd expect that you should be able to see all the contacts there. If you do see them there, copy/paste the into your outlook's addressbook (that is currently empty)
Example: take a look at the attached screenprint - when I click on my hotmail ID, it shows the hotmail contacts on the right side - do you see your contacts if you do this? If so, you can copy/paste (not cut/paste - just as a precaution) them into your regular outlook address book, delete your hotmail acct association from your phone, sync your phone to your PC, and then, set up hotmail acct on your phone again (Just remember to not check the 'sync contacts' option this time)
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