you shouldn't need the 20$ plus account. Now I don't yet have my ipad so I'm not sure how these settings will translate but your best bet would be to set it up manually using the following settings:
Incoming Server:
pop3.live.com
require secure password authentication
port:995
Outgoing Server:
smtp.live.com
outgoing server requires authentication (same username and password as your incoming server)
encryption set to auto
port:25