Hotmail and Windows Live Domains Mail both support Microsoft Exchange services. This means syncing you can synchronize your email, contacts, and calendar across devices including your Android phone.
Select Mail Application on phone
If this is the first time you’ve opened Mail, it will automatically ask you to add a new account, such as my first screen shot below.If you have used it before, Press MENU and select Add account.
Set up email
Enter your email address and password but don’t tap Next, instead tap Manual setup and on the next screen tap Exchange. Example: test@hotmail.com. Note, if you have Windows Live Domain Mail, enter your full email address.
Optional but recommended – Select Send email from this account by default.
What type of account is this?
Select Exchange
Server settings
Domain/Username, enter full email address: e.g. username@hotmail.com. (Note: if the device only says “Domain”, it should be left blank. If the device says “Username”, then enter the full Hotmail address. On some devices, the Domain/Username may be pre-populated incorrectly and should be erased.
Type in password. (may already be filled in)
Server name. Enter: m.hotmail.com (Note: this field may be pre-populated incorrectly depending on device).
Make sure box Use secure connection (SSL) is checked.
Account options
Email checking frequency: Automatic (Push)
Amount to synchronize: Your choice but I recommend at least 1 month.
To sync your calendar and contact make sure both are selected.

Last step
Make the choices you want and select Next and then give the account a Nickname. You can call it anything you like or don’t like. That’s it. At this point, auto syncing, push email with contact and calendar support is now setup on your Android. Enjoy.
For more information see the Windows Live Solution Center.
**Screenshots courtesy of http://www.thesearethedroids.com/2010/08/31/how-to-activesync-hotmail-mail-calendar-and-contacts-with-android/
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