I've got this working on my wife's phone, as far as I can tell (she has a Droid X2).
In the process had to update the Outlook connector plug-in on her PC. I did the following:
1. Removed her Hotmail account from Outlook.
2. Used the Outlook connector plug-in menu to add the account back. At that point I was prompted to update the connector plug-in.
3. Re-added her Hotmail account.
Went to phone:
1. Removed previously added Hotmail account (which had been added as an Email account).
2. Re-Added Hotmail account - but used the "Corporate Sync" account type so the account has ActiveSync support - and used m.hotmail.com as the server when prompted to enter it (phone couldn't get the server name automatically). The instructions here that you posted provide any info required:
How to setup Hotmail on Android Phones
After adding the account, I checked settings to ensure that email/contacts/calendar were all checked for syncing, and confirmed in Contacts via the Display option in the menu that the Hotmail account was selected for display.
I looked in Contacts and her Hotmail accounts are appearing there now.
She doesn't use the Hotmail calendar at all, but confirmed it's listed in the available calendars, and am able to sync US Holidays from her Hotmail account to the phone. I entered an event on her phone but haven't seen it on her Hotmail account on the PC browser yet (been a minute or so). I'll post back if it shows up or not...
An event entered on the Hotmail calendar on her PC browser showed up on the phone immediately.
If i edit that event the changes show up on the PC immediately.
But events added on the phone calendar don't show up on the calendar on the PC.
Seems the same w/Contacts - added on PC syncs to phone right away, edits sync back. Added on phone doesn't seem to sync back.
My wife can live w/these limitations for now, since she rarely (i.e., never) adds contacts on her phone, but will have to figure out if I have missed a setting or if there is a glitch.
This solves a problem for my wife, as she prefers to use Windows Live Mail w/her hotmail account on her computer, and keep her personal contacts there, so now she has those contacts sync'd to her phone automatically.
Or to put it more succinctly - Suhweet!!
THanks, RazzMaTazz for posting this - perfecto! Take a gold star out of petty cash.