Neowin reports that Microsoft is testing a new version of Hotmail. The project is codenamed Kahuna and will feature a new interface, routine inbox refreshing and a new preview panel which will enable users to read and reply to e-mail without navigating away from their inbox.
Sources close to Hotmail claim the new interface is called Wave 11. It is still lacking in featured but it is said that Microsoft will go four a cleaner, minimalist look with the new version.
Many details regarding the new version of Hotmail aren't know yet but it is likely to feature a closer integration with MSN Spaces and MSN Messenger.
The next Hotmail is engineered to meet or exceed offers from competitors such as Yahoo and Google.