I haven't done it in a while...
But I'm pretty sure when you create the e-mail, you just put in your hotmail address when it asks for the e-mail and it auto fills everything else in.
However, when I did this, you also had to either have the subscription or have your account around since the days when it was free to do.
POP server: pop3.live.com (Port 995)
POP SSL required? Yes
User name: Your Windows Live ID, for example firstname.lastname@example.org
Password: The password you usually use to sign in to Hotmail or Windows Live
SMTP server: smtp.live.com (Port 25)
Authentication required? Yes (this matches your POP username and password)
TLS/SSL required? Yes
The reason for that is because the website is imap and the outlook connection is pop. The only way to get imap to work is to use outlook connector which you can get from windows live. or use pop if that doesn't work ..
I just used the connector with lookout 2010 - worked fine.
I've since moved my mail back to a mailserver I look after due the the fact that working with a mail server in london is faster than one on texas Also thunderbird is a better client for handling IMAP mail anyway.