Best thing to do is always remember to create new folders on hotmail and not outlook otherwise new install of outlook might loose your folders on local machine! Trust me I've done it before, but the IMAP from hotmail to outlook is quick and make sure you can tweak deleted emails from outlook in sync with hotmail otherwise your hotmail could get fully quite quick if not deleted from hotmail aswell!
A friend ask me to do this to yahoo to outlook sadly its the one free account you can't connect to outlook 
Len's on about the Outlook.com website, which was Hotmail, not the program Outlook
So from that do I deduce that they both run concurrently?
One does not replace the other?
If so I dont see the point!
Hotmail is becoming outlook.com, you can use your hotmail address with the outlook website, the point is that hotmail's website is utter crap and the Outlook site is muchos better.
