Instead of syncing to iCloud, you can add your Windows Live Account as an email account, and choose yes for syncing contacts and calendars. This will sync your iPad and iPhone with the information saved on your Live Account.
I have added my live account as an address, but I didn't see an option to link contacts or calandar. Where do I look for that and where should I add the address because I could have added the address to the wrong spot.
Choose: Settings - Mail, Contacts, Calendars - Click your Live account - and then you should have sliders for Mail, Contacts, Notes, and Reminders. This will add them from your Live account to your phone. It will not add them to your iCloud contatcs, but instead will sync them with Live/Hotmail.