Name: Your Name (What ever you want)
Email: Your email address is your username
Password: Your live.com account password
Description: Windows Live
Click Next Button
Hostname: imap-mail.outlook.com
Username: Your email address is your username
Password: Your live.com account password
Hostname: smtp-mail.outlook.com
Username: Your email address is your username
Password: Your live.com account password
Click Save Button
Use SSL: Yes
Authentication: Password
Server Port: 993
Use SSL: Yes
Authentication: Password
Server Port: 587
You can login live.com and Signup for live.com new account on your iPhone from here.