If you REALLY want to remove it, follow these instructions:
http://support.microsoft.com/default...b;en-us;255176
well, that did get rid of the entry, AlaricD. Thanks. As your linked site instructed, I found and deleted the reg key. Just a couple of things still puzzling me...

As the hotmail entry was the only one left showing via
tools-internet options-security-Trusted sites-sites
I'm wondering what all the other keys are doing in the registry location from which I'd deleted the hotmail key - like what zone are THOSE entries in
In other words, the hotmail key was certainly not alone in that registry location.

The other puzzling thing is that I'm still not able to change the security setting out of LOW security...any thoughts?

Thanks again!