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I don't know if it'll work with Hotmail. I tried to do the same thing using my Gmail account, until I found out that it won't work with Gmail. I wound up using the SMTP server, and thus the email account that my ISP gives me. Works perfect every time and hasn't failed on me once since I implemented it. In fact, my first sketch didn't have anything to stop it so before I could get to the Arduino to unplug it, my iPhone had close to 30 text messages. (I have the emails sent to my phone number @ my cellular provider so they come through as SMS messages.)