These most likely also work on other platforms other than the iPhone 

Ok, Many people use various applications for the App Store and pay to use there Hotmail account its actually free to connect using the stand application via POP3 & SMTP.

Use the follow settings to connect using Mail App on iPhone 

Firstly setup an mail account as "Other" the following details are then to be used. Enter username and password. Click "Next".

Important: Make sure you select POP3 at the top

Incoming Setup

Outgoing Setup

These settings work like a treat on my iPhone. Currently i use my own email server and Exchange so i will not be using this feature however many people do use this an i've setup this up on a couple of people's iPhones now and it works