Click on "Windows Live Mobile" link in the notifications options to change Windows Live Mobile account.
Then setup "Hotmail Notification"
And then, for testing, set all your new incoming emails to notification. Save it and send yourself an email and see if you get notified (this will cost a bit). If that works, then disable all notifications again and try to setup the forwarding.
I have to say, my forwarding looks different than yours.
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"Common sense is not as common as commonly believed" by sjau
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