nope ... Hotmail is only supported in the old Outlook Express, I think version 6. For mac there's something called HTTPmail plugin for Mail.app but there's no way to install/add that to the mail app in the iPhone yet ... maybe you could create a Yahoo! account for now and forward your hotmail e-mail to your yahoo account for now, that way at least you'll get the e-mails
Use IzyMail.com. There's a free but limited version and the paid version which is only $17 a year. Well worth it if you either want to keep your MSN/Hotmail account, or need some time to transition to a better POP3/IMAP alternative.