I posted the question to Hotmail and got a surprisingly quick response. Here's the fix in case anyone else is in the same boat:
1. In the upper-right corner of the page, click "Options."
2. Under "Manage your account", click "View and edit your personal information."
3. On the "Account summary" page, click the "Registered information" link (under your Birthdate).
4. Under "Home Location," choose your correct country.
5. Under "Time Zone," choose your correct timezone.
6. Click the "Save" tab.
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