Maybe not?
I do believe this thread has complicated the issue.
Windows Live Mail is a part of Windows Live essentials. I am not clear as to Cat's reference to it only being available through MS Updates?
Windows Live Hotmail is an Internet based Mail client, nothing more.
Windows Live Mail is a standalone Email Program which resides on your harddisk, and collects your email and places it on your harddisk, in your chosen default mailbox.
It is intended as a replacement for Outlook Express and the redundant Windows Mail. There is nothing "kinky" or unusual about it and it operates like any other Hard disk based mail program.
Certainly you can set up pop3 accounts, and also, any internet accounts you may have, including Microsoft Hotmail. It will collect all simaltaneously and, by use of the "Message rules" you can arrange for these to be transferred to folders you have prepared.
It can, like mosrt Email clients, be programmed to check your mail periodically, with a popup in the notificcation area, and/or a sound.
Fwiw.- I have 2 standard Pop3 accounts and three Hotmail accounts, linked with my "Live" signin, in my installation. Windows Live Mail deals with all.
I think Microsofts site is a reasonable tutorial for the moment.
http://explore.live.com/windows-live-mail?os=other