The instructions and screenshots in this setup guide are for Outlook 2013. However, previous versions of Outlook are very similar, and you should be able to more-or-less follow the same steps to set up.
Choose Manual setup or additional server types at the bottom of the page. Click Next.
Choose POP or IMAP. Click Next.
Fill in the user information:
Fill in the server information:
Fill in the logon information:
The screen should look similar to the image below:
Click the More Settings… button in the lower right of the window.
Select the Outgoing Server tab and tick the My outgoing server (SMTP) requires authentication box.
Select the Advanced tab.
It should look exactly as in the screenshot below:
Click OK to save your changes and close the window. Click Next on the Add Account window. Outlook will perform a connection test. If it finds any issues, double check you've not made a mistake following the steps above.
Outlook may not show all of your folders by default. To fix this:
Click on IMAP Folders. A new window will open.
Click Query. A list of your folders will then show.
Click on each folder, and then click the Subscribe button. Your screen should look similar to the image below. Click OK to close the window.
Outlook Live and Outlook 365 are not natively compatible with external contact servers or calendar servers. You will need to use a third party plugin.