1) AFF mails do reach the inbox of your hotmail account, just tested it...
2) AFF does not display RAW MEMBERS ; ONLY RAW VISITORS . From which a percentage signs up as a free member. Apparently your stats are that you have 1100 RAW VISITORS from which 10% signs up as a free member.
So I'm just guessing you need to talk to AFF and have them explain how your stats work and are displayed.
Needless to say that AFF converts pretty bad the last year.