hotmail works with 3.0, it auto finds the correct servers... no need to have another mail service, or forward messages... if you are 2.2.1 it more than likely won't let you auto configure... manual configuration is as follows:
Incoming Mail Server
Host Name : pop3.live.com
Username :
name@hotmail.com (your COMPLETE email address)
Password : of course...
Outgoing Mail Server
SMTP : smtp.live.com
Advanced
Use SSL : ON
Server Port : 995
Hope this helps?