I did it this way.
Add a new e-mail account in Window Live Mail accounts.
1.-Write your hotmail account your password (check mark remember password) and then your desired name to appear in your e-mails, then check mark where it says mannually define settings for the account (I'm translating what I see since I have everything in Spanish)
2.- use pop3.live.com port 110
3.- use smtp.live.com port 587
(Do not check mark any SSL Secure conection)
4.- Finish the settings and close.
5.-Go back to tools/accounts and select the hotmail account and open it, open the servers tab and check mark My server requires authentication.
6.-Go to the advanced tab and move to 5 minutes where it says time to wait for the server.
7.-Then clic apply and ok(accept)
Try to send and receive mail with this account, Avast "a" should spin when you send and receive e-mails in this account.
Same settings work with MSN, Hotmail, and Live accounts from hotmail... I set up 3 different MSN, Hotmail and live accounts that I have for different things.