You could create a Gmail account and use it in Outlook. That's what I do, it's really easy. It's free, it has lots of space (more than Hotmail) and they have a very good spam filter. And if it gets spammed heavily, you can always create a 2nd one. I find Gmail much, much better than hotmail, in all aspects. I use it for all non-business related issues.
Gmail accounts are only created by invitation but I can invite whoever needs one, all I need is any email address that I can send the invitation to.