Yes, I'm both sending and receiving email via Outlook (but the underlying email account is a Hotmail account). The version is definitely licensed, as I downloaded it from Symantec's website.
I've played around with the messaging policies, but nothing I've tried seems to work. I've tried having the default "[PGP] and/or confidential" policy as the only policy enabled. And I've tried creating my own policy where only "[PGP]" in the subject line is needed (with that, too, as the only policy enabled). All to no avail thus far...