I did test those settings with a Hotmail account.
If your ISP blocks port 25 of you'd have to try 587 which also worked when I tried.
Who knows, maybe hotmail is different for you(I tried a live.ca account)
Do you have a working dns address set?
If I ping smtp.live.com, I get 65.55.96.11 as the address, I can put that in for smtp and press the test button and it goes, so even if my dns didn't work.... that would--- you could try that as a test.
Make sure you can ping your camera from your computer.
Check the status page and make sure you have gateway address and dns address.
Make sure you have current firmware.
It might be best to try something other than hotmail, if you have an account with your isp that would be better.