Windows Live Mail is expected to launch in June and will offer a 2GB storage. The webbased email service has a Outllook look and feel. The email can also be read offline using the Desktop Live Mail client, this client will also be able to access IMAP and POP account. The service will be free but ad based.
It will also be possible to get you Live Mail in to Outlook but that will cost 19 Euro a year.