First you would need to create a new folder under the Hotmail Webmail 
account folder. Then using the settings under Copy and Folders set it to 
place your sent mail in that folder; otherwise, it most likely will be 
place in the local sent folder. 

You also need setup a smtp outgoing server if using the following settings:

Description: Webmail - Hotmail SMTP ( can be what you would like to use; 
this is just a suggestion) 
Server Name : localhost ( all lowercase letters)
Port: 25 (unless your system blocks ports below 1025)
Username: enter your full Hotmail Email address
Authentication method:  Password, transmitted insecurely
Connection Security : None

Now under the Hotmail Webmail account setting, set it to use this smtp for 
outgoing mail. An option here is to use the regular Hotmail smtp server; 
unless, you are blocked from using it.

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