Yahoo! Account
Creating a Yahoo! email identity and password gives you access to an account. You can use this as your central email inbox for Yahoo! Mail and other accounts, such as your Hotmail. This is available for free and found on the Yahoo! Mail page http://mail.yahoo.com
Account Settings
The account settings of your Yahoo! Mail control what external emails will show up in your account. Clicking on "Options" or "Mail options" will take you into the menu to access these parameters.
Sending Mail
The "Add Account" option in the Yahoo! Mail account settings creates the fields you will use to set up your Hotmail account. These will include a name for the new link, such as "Hotmail account," a spot for your name and your Hotmail email address.
Receiving Mail
Yahoo! Mail lets you indicate the folder you want your incoming messages to go to, such as your inbox or a specific folder you create. Additionally, you can check or uncheck the option to "Leave mail on POP server" based on your preferences. All that is required is that you type "pop3.live.com" into the "Server" field.