hi, i had the same problem, i resolved it this way:
when you want to configure your hotmail account like any other email in your mobile,
i think the problem is that the Touch 2 (or WM6.5) has some mail-server account settings pre-configured, and the hotmail one is wrong. i managed to use hotmail both as IMAP and POP3 by just entering a wrong e-mail address (like ...@htmail.com), then entering the right serer settings for pop3 or imap (found in hotmail's help by searching pop3 or imap), and finally, after finishing the configuration, just edited the e-mail settings and altered the email address with the right one (@hotmail.com).
now it's working perfectly, just like gmail or any other mail service.
hope this helps.