|From Email:||Your Hotmail email address|
|Delivery Method:||SMTP Server|
|Use authentication:||Yes (checked)|
|Username:||If your email is [email protected] then [email protected] is your Username|
|Password:||Your Hotmail Password|
|Use SSL connection on server:||Yes (checked)|
After setting up your account like above, it should work to send email using your Hotmail address.
Note: You have to send from your Hotmail email address when using the Hotmail SMTP server, it will not work to send from a different email address. You should also know that Hotmail has a limitation that only allows you to send about 100 emails a day. If you exceed this limit you will start getting errors and you will not be able to send any more emails that day using this SMTP server.
Here's how your Email Account window should look after setting up your Hotmail email: