If you are using Windows Live Mail, you dont have to do jack. Let the software auto detect the proper settings. I know it works cause i have linked my Live & Hotmail accounts to Windows Live Mail for at least a year before i found out how to do it with Outlook.
Just create a account, input you information and let Live Mail do the rest. Dont try to manually confiure it cause you will not get the POP3 and SMTP settings right.
pop3.live.com Port 995
smtp.live.com Port 587
Those are the settings. Not to mention you would need to have your FULL email address listed in theusername. It would have to have the @domain.com as well. Not just the bits before the @domain.com part.
That isnt even the full thing. Incoming is dont under SSL but outgoing is done under TSL. If i remember correctly.
I dont know where you read that you need to manually configure Live Mail to work with this, but they are dead wrong. Have the software configure it, it will work.