there is an option in Internet Options - Advanced - 'Allow active content to run in files on My Computer' (at Security)
restart of IE is necessary; have a try with that option switched on; (I wouldn't recommend to leave it switched on)
apart from that, 'til now I couldn't reproduce the behavior you have.
If you still searching for a solution:
1. the button "Click here to get redirected" works, doesn't it?
2. I'm puzzled about the first lines in your hotlog.htm; for me only the first line has a line break after it
<!-- saved from url=(0016)http://localhost -->
<html><head></head><body onload="document.pform.submit(); "><form name="pform" action="https://login.live.com/ppsecure/sha1auth.srf?lc=1033"method="POST">
3. please save this page
on your computer (as Web Page, complete .htm), open it from the local file and have a look if it still switches to the 2nd page; and please open it in an editor and post that here
4. may I ask for your system language and your amsn version (to be found on help - about)