You can set up a Hotmail account in Windows Mail using these settings:
http://mailcall.spaces.live.com/Blog/cns!CC9301187A51FE33!49799.entry
Note: Windows Mail's new account wizard is hard-coded to reject
Hotmail addresses. So, when you enter your email address initially,
give it a fake one, such as (e-mail address removed). After the account setup
is complete, go back and correct your email address.
The above procedure sets up a POP account. If you prefer a HTTP account
(which keeps all folders synchronized with the server), upgrade to Windows
Live Mail (WLM):
http://download.live.com/wlmail
The WLM installer will automatically configure your Hotmail account for you
after you give it your Hotmail address.