There's a free app in the app store called pageonce, where you can keep track of all kinds of accounts (banking, ebay, electric company), and e-mail. I have my hotmail account set up in it and check it on my iPhone through there.
I have it working but I think that's because I pay them an annual subscription fee. Note that it's not a full two-way sync implementation. Only pulls down new emails. Deletes on device do not get propogated up.