I have a regular MSN premium account (versus hotmail) and I have always had it working on my Iphone (since summer of 07). It even blows in three of my outlook calendars (which I also have set up on my home computer using these same settings).
http://support.microsoft.com/kb/930008 The only change from the hotmail configuration is that you need to change the default servers that apple uses for MSN to the "live" servers. (sometimes you need to go into the settings a second time to edit them)
STep 1) Select "Settings icon" on main Iphone screen
Step 2) Select "Mail, Contacts, Calendars" on menu
Step 3) Under Accounts select "Add Account"
Step 4) *DO NOT* Select Microsoft exchange unless you are setting up a work account
Select
"Other"
Step 5) On the New Account Screen
Enter your actual name, Bob Jones
Enter your full email address BobJones@msn.com
Enter your Password (to your msn email account)
Enter a Description (just a generic name for the account like MSN or accept the default with is your email address)
Step 6 It takes you to a screen that warns you that you need to have a MSN premium subscription - select next (top right blue button)and will attempt to connect to the pop3.email.msn.com server Then you will get a popup error message "Cannot connect using SSL do you want to try setting up the account without SSL?) yes or no Select NO..
Step 7 Finally you get to the actual account screen that you need to edit. YEAH
POP
Name: John Smith (note: enter your own name)
Address: example@msn.com (note: enter your full MSN email address this time)
Description: MSN
Incoming Mail Server:
Host Name: pop3.live.com (this is critical.. change to live vs email.msn)
User Name: example@hotmail.com (note: enter your full MSN email address)
Password: password (note: enter your MSN password)
Outgoing Mail Server (SMTP):
Host Name: smtp.live.com
User Name: example@msn.com (note: enter your full MSN email address)
Password: password (note: enter your MSN password)
Step 10: Save (you have to save in order to see the advance settings) but it sometimes goes out for a very long time even on a wireless connection and tries to verify your pop account again will give you an error that it cannot send mail. HIT OK (if you want to avoid the error screens just enter a fake server in the earlier step.. ie xxx@tst.com and manually enter all the data to get to the advance screen)
Step 8
You should be on the Mail, contacts, calendar and select "accounts" go to your msn account
Scroll way down to the bottom. red button appears with advance options
Advanced Settings:
Incoming Uses SSL: On
Outgoing Uses SSL: On
Authentication: Password
Delete from Server: When removed from Inbox (or your preferred option)
Server Port should be 995
Tada.. up and running including your calendar and contacts