If i remember correctly they do charge you for the upgraded accounts that allow you to use the POP3 and SMTP settings... unless you've had your hotmail account since before it was owned by Microsoft (or before a certain date), then you can set up the upgraded account for free (or use the settings at least, should be easy to find out).
However, I've had my hotmail account since the dawn of time and i wasn't able to use it with Outlook even after much tinkering and emails with MS. In the end, i downloaded Mozilla's Thunderbird, and used the Webmail extension to download my hotmail emails. Probably not much use to you though since you already have accounts on Outlook.