Windows Live Hotmail aka MSN Hotmail finally is adding POP3 and SMTP support for its free user base. Previously, POP3 and SMTP access is only available to paid Windows Live Hotmail Plus subscribers. POP3 and SMTP protocols allows user to use desktop-based or mobiled-based (such as iPhone) email client to access Hotmail mailboxes without opening web browser to browse to web-based Hotmail online.

The free POP3 and SMTP access will be available to all, each and every Hotmail users eventually. However, during the initial rolling out stage, the POP3 and SMTP support on the Hotmail account will be enabled in stage by country and regional market. Windows Live blog announced that Hotmail users in the United Kingdom, Canada, Australia, France, Japan, Spain, Germany, Italy, and the Netherlands are the first to enjoy the free POP3 and SMTP service as part of Hotmail wave 3 roll out. Good news is, all Hotmail users should have POP3 and SMTP enabled and turned on in their account by end of 2009.
To setup mail client to access Windows Live Hotmail account, use the following Hotmail POP3 and SMTP configuration settings:

Incoming Server (POP3 Server): pop3.live.com
Incoming Server POP Port: 995
Incoming Server POP SSL Encryption: Yes (On or Required)
Outgoing Server (SMTP Server): smtp.live.com
Outgoing Server SMTP Port: 25
Outgoing Server Authentication: Yes (On – Use POP username and password or Hotmail credentials)
Outgoing Server TLS or SSL Secure Encrypted Connection: Yes (On or Required)
Tip (by J): Outgoing Server of Hotmail also supports port 587, useful for people who encounters error for STMP due to ISP blockage or any other reason.
User Name: Windows Live ID (e.g. yourname@hotmail.com)
Password: password used to sign in to Hotmail or Windows Live service
Note: “Log on using Secure Password Authentication (SPA)” check box in Outlook, Outlook Express or Windows Live Mail should not be selected.

 Access Hotmail in Outlook with Microsoft Office Outlook Connector

Hotmail (also known as Windows Live Hotmail or MSN Hotmail) used to be able to add the email account to Microsoft Outlook by using HTTP connection method. However, the ordinary HTTP Hotmail account access method no longer work, and Hotmail user requires to sign up for paid Hotmail Plus subscription service. If the user attempts to setup Outlook to connect to Hotmail HTTP server, the following error messages may occur.
Access to Hotmail via Outlook and Outlook Express now requires a subscription. Please sign up at http://join.msn.com/general/Email
Or, more simply, the user name and password credentials simply does not work, with Outlook keeps prompting user to enter a correct password, although the password entered is already valid.
The workaround to access Hotmail from Outlook is to use Microsoft Office Outlook Connector, which Microsoft provides for free, and available for free download via Microsoft Download Center or as part of Windows Live Essentials pack.
Using Microsoft Office Outlook Connector to sync between Windows Live Hotmail account and Outlook provides several advantages over HTTP or POP3 connection, as the connector also allows user to access and manage Hotmail account including e-mail messages, contacts and calendars from within Outlook. In Outlook, user can apply Junk Mail filter, rules, alerts, macros and etc. to the synced mail messages.
To use Microsoft Office Outlook Connector, download and install OutlookConnector.exe.
After installing, start Microsoft Outlook, and Outlook Connector will prompt user to enter Hotmail email address, password and sender name to tag with outgoing email. Once the information is entered, a new Hotmail folder will be added to the Outlook’s Mail Folders tree. Expand the Hotmail node to access Inbox, Drafts, Junk E-mail, Outbox, Sent Items and etc. In Calender and Contacts, there will be new addition of calendar and contacts in Hotmail address too.
To sync the email in Hotmail and Outlook, just click on Send/Receive button, or it will automatically receiving and sending email based on the preset interval. It’s also possible to use and access multiple Windows Live Hotmail or MSN Hotmail account with Microsoft Outlook Connector. To do so, click on Outlook Connector pull down menu on the menu bar, and then select Add a New Account.
Microsoft Outlook Office Connector only support Microsoft Outlook 2003 and Microsoft Outlook 2007. For others email client, Hotmail is adding POP3 and SMTP support to allow retrieving of email via POP3 protocol.