A couple of thoughts:
Is there perhaps a setting in the Hotmail account itself that you need to set to allow pop3 access to the account? I haven’t done it for ages but a vaguely recall something like that in my old gmail account.
Try using pop3.live.com and smtp.live.com as the incoming and outgoing server addresses. That’s what the used to be when it changed from Hotmail to Live before it became Outlook.
Tick the “Require logon using SPA” box and then check in the advanced settings/more settings that “outgoing server (SMTP) requires authentication” and “use same settings as my incoming mail server” are both selected.
And then one last tab under Advanced check these:
Make sure This server requires an encrypted connection (SSL) is checked under Incoming server (POP3):.
Make sure SSL is selected for Use the following type of encrypted connection: under Outgoing server (SMTP):
Check that “995” appears under Incoming server (POP3:) and “25” under Outgoing server (SMTP):.