Hi gphiilips,
This seems to be an FAQ here, here is what I did to get hotmail on the iphone. As suggested, setup a Gmail account and set it up as an imap account on the iphone. When you have done that, login to your hotmail account, go to options, manage your account then click on 'forward mail to another email account'. Enter the details of your new Gmail account here and when you have done that you will need to verify that address (hotmail will send you an email and you just have to click on the link etc). When done, email will be automatically sent from hotmail to gmail and in turn to your iphone. Over time just change stuff to gmail. Hope that helps. Cheers.