From Heinz Tschabitscher,
Your Guide to Email.
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It's nice to have all your mail in one place (your Windows Live Hotmail Inbox), but it can also be confusing and is often not very efficient. To help you organizing your incoming email messages, Windows Live Hotmail can put them in specified folders automatically.

Set Up an Incoming Mail Filter in Windows Live Hotmail

To file incoming mail automatically in Windows Live Hotmail:

• ›› Step by Step Screenshot Walkthrough

• Select Options | More options... (or just Options in Windows Live Hotmail classic) from the toolbar.
• Follow the Automatically sort e-mail into folders link under Customize your mail.
• Click New filter.
• Select the desired filtering criterion under Which messages are you looking for?.
• Choose the folder to receive all mail matching your criterion under Where do you want to put these messages?.
• Click Save.

Set Up an Incoming Mail Filter in MSN Hotmail

First, you should create a new MSN Hotmail folder to file your messages in.

Then, to set up a mail rule in MSN Hotmail:

• ›› Step by Step Screenshot Walkthrough

• Select Options from the main Hotmail navigation bar.
• Make sure the Mail category is selected.
• Follow the Custom Filters link.
• Click New Filter.
• Select the criterion under Filter Criteria.
  • For example, to catch all messages from sender@example.com, the criterion would read: Identify incoming messages which: are from the e-mail address: sender@example.com..
• Select the Hotmail folder to file all filtered messages in.
  • Alternatively, select Delete these messages to have Hotmail automatically delete all emails matching the criterion.
• Click OK.