1. On the Tools menu, click E-mail Accounts.
2. Click Add a new e-mail account, and then click Next.
3. Click HTTP, and then click Next.
4. Under User Information, do the following:
In the Your Name box, type your full name the way you want it to appear to
other people.
In the E-mail Address box, type your MSN account name, followed by @msn.com
or @hotmail.com.
Under Server Information, in the HTTP Mail Service Provider box, click MSN
or Hotmail.
Note The HTTP Mail Service Provider setting automatically switches to MSN
or Hotmail if an e-mail address ending with @msn.com or @hotmail.com is
entered in step 4.
The Server URL for MSN or MSN Hotmail is automatically set.
Under Logon Information, do the following:
In the User Name box, type your e-mail address, including @msn.com or
@hotmail.com.
In the Password box, type your password.
Select the Remember password check box.
Note You have the option to have Outlook remember your password by typing
it in the Password box and selecting the Remember password check box. Having
Outlook remember your password means that you won't have to type your
password each time you access the account; however, it also means that the
account is vulnerable to anyone who has access to your computer.
5. Click Finish.
Note Do not select the Log on using Secure Password Authentication (SPA)
check box
In some cases, you may receive the following error message after you
complete the previous steps:
"Can't open this item. You must connect to the server to complete this
action."
To connect select any folder in this account, and then on the File menu,
click Connect to Hotmail.
Additionally, what subscription plan of Hotmail do you have??? Free MSN
Hotmail accounts cannot be used with Outlook. You will need Microsoft Office
Outlook Connector.
See the following for more info:
http://office.microsoft.com/en-us/outlook/HA011000051033.aspx