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I'm using Outlook 2010 and am using the hotmail connector, which I believe is a mapi connection like what Exchange server would use, to connect to my live.com email address. Synchronizing folders seems to work similar to an exchange type account, but unlike my exchange emails, it seems like it does NOT sync in real time. It only syncs when you do a manual or scheduled send/receive?

Is this the correct behavior?

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Yes, that is "correct" behavior. Several users have also this experience. Check out comment of the user named Ronald at "10 Reasons to switch to Hotmail if you use Outlook".

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