[Galaxy S II Q&A, Help & Troubleshooting] tyryanjr:
Symptoms:

"Sync is currently experiencing problems. It will be back shortly"

Cause:

Issue is a result of m.hotmail.com resolving to activesync.hot.glbdns.microsoft.com(CNAME). This in turn may cause TLS issues. The Common Name or Subject Name and Subject Alternative Names do not match the CNAME provided in DNS responses provided to the device.

m.hotmail.com canonical name = activesync.hot.glbdns.microsoft.com

activesync.hot.glbdns.microsoft.com internet address = 65.55.32.30, 207.46.101.12

Common Name = *.hotmail.com

Subject Alternative Names = *.hotmail.com, *.live.com, *.outlook.com

Name: col401.hotmail.com

Address: 65.55.32.30

Name: bay402.hotmail.com

Address: 207.46.101.12

Network trace collected from Android device shows during the TLS Handshake, the device will send an error TLS Rec Layer-1 Encrypted Alert indicating an issue when attempting to complete the TLS Handshake.

110 7:08:01 AM 7/6/2012 2.2868610 10.8.0.1 activesync.hot.glbdns.microsoft.com TCP TCP:Flags=......S., SrcPort=35574, DstPort=HTTPS(443), PayloadLen=0, Seq=2146828155, Ack=0, Win=65535 ( Negotiating scale factor 0x6 ) = 65535

111 7:08:01 AM 7/6/2012 2.3947200 activesync.hot.glbdns.microsoft.com 10.8.0.1 TCP TCP:Flags=...A..S., SrcPort=HTTPS(443), DstPort=35574, PayloadLen=0, Seq=2148139140, Ack=2146828156, Win=65535 ( Scale factor not supported ) = 65535

117 7:08:01 AM 7/6/2012 2.3951770 10.8.0.1 activesync.hot.glbdns.microsoft.com TCP TCP:Flags=...A...., SrcPort=35574, DstPort=HTTPS(443), PayloadLen=0, Seq=2146828156, Ack=2148139141, Win=65535 (scale factor 0x0) = 65535

122 7:08:01 AM 7/6/2012 2.4047610 10.8.0.1 activesync.hot.glbdns.microsoft.com TLS TLS:TLS Rec Layer-1 HandShake: Client Hello.

123 7:08:01 AM 7/6/2012 2.4048830 activesync.hot.glbdns.microsoft.com 10.8.0.1 TCP TCP:Flags=...A...., SrcPort=HTTPS(443), DstPort=35574, PayloadLen=0, Seq=2148139141, Ack=2146828340, Win=65535 (scale factor 0x0) = 65535

132 7:08:01 AM 7/6/2012 2.5208910 activesync.hot.glbdns.microsoft.com 10.8.0.1 TLS TLS:TLS Rec Layer-1 HandShake: Server Hello. Certificate.

133 7:08:01 AM 7/6/2012 2.5209820 10.8.0.1 activesync.hot.glbdns.microsoft.com TCP TCP:Flags=...A...., SrcPort=35574, DstPort=HTTPS(443), PayloadLen=0, Seq=2146828340, Ack=2148140433, Win=65535 (scale factor 0x0) = 65535

134 7:08:01 AM 7/6/2012 2.5211050 activesync.hot.glbdns.microsoft.com 10.8.0.1 TCP TCP:[Continuation to #132]Flags=...A...., SrcPort=HTTPS(443), DstPort=35574, PayloadLen=1272, Seq=2148140433 - 2148141705, Ack=2146828340, Win=65535 (scale factor 0x0) = 65535

135 7:08:01 AM 7/6/2012 2.5211660 10.8.0.1 activesync.hot.glbdns.microsoft.com TCP TCP:Flags=...A...., SrcPort=35574, DstPort=HTTPS(443), PayloadLen=0, Seq=2146828340, Ack=2148141705, Win=65535 (scale factor 0x0) = 65535

136 7:08:01 AM 7/6/2012 2.5212270 activesync.hot.glbdns.microsoft.com 10.8.0.1 TCP TCP:Flags=...AP..., SrcPort=HTTPS(443), DstPort=35574, PayloadLen=0, Seq=2148141705, Ack=2146828340, Win=65535 (scale factor 0x0) = 65535

142 7:08:01 AM 7/6/2012 2.6186480 10.8.0.1 activesync.hot.glbdns.microsoft.com TLS TLS:TLS Rec Layer-1 HandShake: Client Key Exchange.; TLS Rec Layer-2 Cipher Change Spec; TLS Rec Layer-3 HandShake: Encrypted Handshake Message.

143 7:08:01 AM 7/6/2012 2.6187700 activesync.hot.glbdns.microsoft.com 10.8.0.1 TCP TCP:Flags=...A...., SrcPort=HTTPS(443), DstPort=35574, PayloadLen=0, Seq=2148141705, Ack=2146828650, Win=65535 (scale factor 0x0) = 65535

149 7:08:01 AM 7/6/2012 2.7243400 activesync.hot.glbdns.microsoft.com 10.8.0.1 TCP TCP:[Continuation to #132]Flags=...AP..., SrcPort=HTTPS(443), DstPort=35574, PayloadLen=43, Seq=2148141705 - 2148141748, Ack=2146828650, Win=65535 (scale factor 0x0) = 65535

150 7:08:01 AM 7/6/2012 2.7244010 10.8.0.1 activesync.hot.glbdns.microsoft.com TCP TCP:Flags=...A...., SrcPort=35574, DstPort=HTTPS(443), PayloadLen=0, Seq=2146828650, Ack=2148141748, Win=65535 (scale factor 0x0) = 65535

151 7:08:01 AM 7/6/2012 2.7336180 10.8.0.1 activesync.hot.glbdns.microsoft.com TLS TLS:TLS Rec Layer-1 SSL Application Data

152 7:08:01 AM 7/6/2012 2.7337400 activesync.hot.glbdns.microsoft.com 10.8.0.1 TCP TCP:Flags=...A...., SrcPort=HTTPS(443), DstPort=35574, PayloadLen=0, Seq=2148141748, Ack=2146829069, Win=65535 (scale factor 0x0) = 65535

153 7:08:01 AM 7/6/2012 2.7338620 10.8.0.1 activesync.hot.glbdns.microsoft.com TLS TLS:TLS Rec Layer-1 SSL Application Data

154 7:08:01 AM 7/6/2012 2.7339230 activesync.hot.glbdns.microsoft.com 10.8.0.1 TCP TCP:Flags=...A...., SrcPort=HTTPS(443), DstPort=35574, PayloadLen=0, Seq=2148141748, Ack=2146829509, Win=65535 (scale factor 0x0) = 65535

172 7:08:02 AM 7/6/2012 3.0251490 10.8.0.1 activesync.hot.glbdns.microsoft.com TLS TLS:TLS Rec Layer-1 Encrypted Alert

173 7:08:02 AM 7/6/2012 3.0253010 activesync.hot.glbdns.microsoft.com 10.8.0.1 TCP TCP:Flags=...A...., SrcPort=HTTPS(443), DstPort=35574, PayloadLen=0, Seq=2148141748, Ack=2146829532, Win=65535 (scale factor 0x0) = 65535

174 7:08:02 AM 7/6/2012 3.0253620 10.8.0.1 activesync.hot.glbdns.microsoft.com TCP TCP:Flags=...A...F, SrcPort=35574, DstPort=HTTPS(443), PayloadLen=0, Seq=2146829532, Ack=2148141748, Win=65535 (scale factor 0x0) = 65535

175 7:08:02 AM 7/6/2012 3.0254540 activesync.hot.glbdns.microsoft.com 10.8.0.1 TCP TCP:Flags=...A...., SrcPort=HTTPS(443), DstPort=35574, PayloadLen=0, Seq=2148141748, Ack=2146829533, Win=65535 (scale factor 0x0) = 65535

176 7:08:02 AM 7/6/2012 3.0255760 activesync.hot.glbdns.microsoft.com 10.8.0.1 TCP TCP:Flags=...A...F, SrcPort=HTTPS(443), DstPort=35574, PayloadLen=0, Seq=2148141748, Ack=2146829533, Win=65535 (scale factor 0x0) = 65535

177 7:08:02 AM 7/6/2012 3.0256980 10.8.0.1 activesync.hot.glbdns.microsoft.com TCP TCP:Flags=...A...., SrcPort=35574, DstPort=HTTPS(443), PayloadLen=0, Seq=2146829533, Ack=2148141749, Win=65535 (scale factor 0x0) = 65535

Workaround:

Settings > Accounts & sync > Add(+) > Exchange ActiveSync > Manual Setup

Email address: <EmailAddress>

Server address: bay402.hotmail.com or col401.hotmail.com

Domain: <leaveblank>

Username: <EmailAddress>

Password: <password>

Select "This server requires an encrypted SSL connection"

Caveat: Should either bay402.hotmail.com or col401.hotmail.com become unavailable there is no method for Global DNS fallback. That is the function of DNS resource record activesync.hot.glbdns.microsoft.com(CNAME).