I got it solved,
first I did this one by one, and it seems that the order is very important to get it to work.
First remove facebook connection from Hotmail then sign out of Hotmail.
Then on facebook change your password and make sure you select log out of all services.
When facebook logs you back in. make sure you log out from facebook too.
Then log on to Hotmail. Connect facebook once again. when you try to connect facebook it will redirect you to the facebook login page.
Type in your FB username and new password. it will take few seconds to connect. then it will send you back to the hotmail application page.
go to hotmail. go online and check your facebook chat presence.
Make sure you use Internet Explorer not Chrome.
This worked for me.
hope it helps u