Microsoft is readying a major Hotmail update for later this year - one the company claims "gets flags right." The end result is a system that places marked emails in their own section at the top of the inbox.

The updated flagging system comes from an in-depth analysis of user behavior, announced Dick Craddock, Hotmail group program manager. "We found that almost everyone has a way to mark certain messages as important," he said.
Craddock believes the new model benefits every Hotmail user. Those who dislike it aren't forced to use it.
"We think the new flagging behavior is a simple and elegant solution to keeping on top of your most important email," said Craddock. "But we also realize that some people loved the way that flags worked before and don't want any change."
Clicking a quick-close button makes the new section disappear, he said, reverting Hotmail to its well-worn look.
Other options provide "power users" the tools to enjoy the best of both worlds, the manager added.
"Hotmail has three new features that make this easy: personal categories, custom Quick Views, and customized Instant Actions," Craddock explained. Personal categories allows customers to select flagged messages and place them into a separate section for later review, he said. Once moved, the emails can be un-flagged.
Craddock confirmed the update will be available in a few weeks so his team has time to "learn and respond to feedback."
Earlier this year, Microsoft banned common Hotmail passwords and boasted that it has reduced Hotmail spam mail by 90 percent. The company added an unsubscribe button to Hotmail last month so users could easily opt out of unwanted, though legal "graymail." (via Windows Team Blog)















