You should replace only "$(link-orig)" in the two places I mentioned. Both are in forms. Both look like this:
<input type="hidden" name="dst" value="$(link-orig)" />
Maybe it wants a protocol also. Try in both places:
<input type="hidden" name="dst" value="http://www.hotmail.com
One is in the form "sendin" (first you will find) and the other is in the form "login" (farther down the page).
ADD: Try another link besides hotmail. It does another redirect to a SSL (https) login page. Try Google.
<input type="hidden" name="dst" value="http://www.google.com
Are you using trial users? The $(link-orig-esc) variable only applies to the trial user. You must escape the url if you want to use trial users.
url encodes to