Mac OS X provides an built in email program called Mail. Unfortunately, Mail does not come with built in support for HTTP email servers. In order to get your MSN or Hotmail emails to work with Mac OS X Mail, you must first install a plug-in to add HTTP support.
Automatic Software Pty Ltd makes a Mail HTTP plug-in that allows you to access hotmail from Apple's Mail program.
You can get the latest version of the plug-in here: http://www.versiontracker.com/dyn/moreinfo/macosx/18189
Please make sure to exit and re-start Mail after installing the plug-in.
Here are the correct setting to get Hotmail configured:
Email Address: is your full address (firstname.lastname@example.org)
Incoming Mail server: hotmail.com
Username: your username (myemail)
Password: <your password>
Outgoing mail server is HTTPMail:username (myemail)
Leave SSL unchecked.
You are done!
The only limitation is that you cannot see folders in hotmail, all you get is your inbox.