Just tested it out, it works the same way as any other pop3 account.
If you compose and send from OE copy of sent email is put in Sent folder.
If you compose and send from Webmail copy of sent email is put in Sent folder on webmail server.
Spam stays on Server and you have to 'have a look' now and then to check if there is any that is not spam.
re The old Hotmail folders in OE - I guess they will still work until 1st Sept 2009 - a matter of personal choice if you want to delete or stop using them before switch off date.
Emails in extra folders that I have added, I have created new folders in Local Folders and dragged and dropped the contents from hotmail DAV folders.
And thanks, I haven't had the notification but followed your link and reconfigured my existing OE Hotmail accounts to pop3.
I also had a couple of hotmail addys that I could only access in Webmail but now I can get them in OE as well
Many thanks :))