I have had this same problem too! I have changed my password twice and have been able to log in after jumping through a number of verification hoops. But the next day, when I try to log in again, I get the same 'You've tried to sign in too many times with incorrect account/password' even though I had successfully logged in the day before. It is so frustrating and so difficult to try to reach Microsoft Support for this. I had to make a new account just to post this comment and cry for help.

I am having the same problem. I can access my Hotmail from my phone (maybe because I never logged out?) but cannot log in on my desktop or laptop despite going through all the steps to change my password. Why is it so freakishly hard to find an answer or get help from Microsoft? 

It sounds like your Microsoft account is temporarily locked out because you tried too many times and failed. Don't try to log in for 24 to 48 hours, then log in once with the right information. It usually fixes itself.