Awesome. Not like I use Hotmail, but... So now if someone's password generator just happen to generate "weak" password not containing, for example, a digit (uh, even `openssl rand -base64 12` provides such outputs from time to time) user'll have to step away from usual password generation scheme and create special password just for hotmail.com.
Please, for the love of sanity, never ever forbid any passwords (except for too short ones, with a reasonable minimal length). Just freak user out so he'll think twice before using possibly weak password. You'll educate users this way instead of frustrating them.
(And never limit maximum length or set of possible characters, except for rare cases where there are technical obstacles requiring to do so - like non-8-bit-safe protocols. If user wants to authenticate with a passpoem, written in runic alphabet — let him have it.)