Hotmail on Galaxy Ace II

I have been trying to set up my hotmail account on my new phone but I keep receiving the either error 'invalid username/password' or unable to connect server. I have followed all advice found on forums(including changing password) and tried the Hotmail & Outlook apps. I even contacted Virgin who tried most of what I'd already done & then referred me back to Microsoft. I'd rather not have to pay to have this problem put right - I'm beginning to wish I hadn't changed from my Blackberry where I didn't have any problems!

Thanks for any help you can give me