This is the response I received from Hotmail - in case anyone else is having this issue....
Currently there are several ways on how you can access your account on your BlackBerry device. If you are a free Windows Live Hotmail account holder, you can access your account through a Web browser on your mobile phone. However, if you would like to access your Windows Live Hotmail account using POP3 on your mobile phone's e-mail client, I would suggest signing up to Windows Live Hotmail Plus. To join, please visit. Microsoft Online Services Home
If you are already subscribed to Windows Live Hotmail Plus, you can use the information below to configure your account.
Note: Our POP service requires that you use Secure Sockets Layer (SSL) with the POP and SMTP connection and use SMTP authentication. This is to ensure that your e-mail address and password are not subject to tampering.
. POP: pop3.live.com (port 995)
. SMTP: smtp.live.com (port 25)
Note: make sure you check the box that indicates that your outgoing server requires authentication (in most mail clients this is not checked by default).
. Username: your full e-mail address
. Password: your Windows Live ID password
Should you need assistance in configuring these settings on your BlackBerry, please contact the BlackBerry Support Team.
You are valuable at Windows Live and we look forward to providing you with consistent and effective service. We appreciate your input and involvement in our Windows Live products.