POP3/ IMAP difference
With POP3 protocol you can access only one folder (typically the Inbox). The POP3 protocol does not include any support for subfolders. If you need this functionality please use IMAP.
Hotmail and IMAP
As far as we know, the only way to access subfolders on Hotmail is through Microsoft's Exchange ActiveSync protoocol, which we don't support at the moment. Sorry!