Here are the settings required:
http://i.imgur.com/nrvoRnA.jpg
http://i.imgur.com/iYOD3i0.jpg

But I don't know what to enter where.

Please see my answer (May 15th, 2013 18:29) on https://www.digitalocean.com/community/questions/how-do-i-setup-windows-live-email-for-digital-ocean

Thanks a lot! Works like a charm.

Awesome! Glad to hear that :]

Hi Kamal, I've tried the instructions you gave in your answer, but it still hasn't worked for me. I have waited for more than 48 hours but still no success. I even deleted the outlook domain and did it all over again, it's been 24 hours now but nothing yet.

There's a part of the instruction on that says "Mail setup (required)" and has these settings:

DNS record type: MX
Host: 500shops.com
MX server: aac5d12cbb3f4dafbd41668a303983.pamx1.hotmail.com
TTL: 3600 or 1 hour
Priority: 10 (or High priority)

You didn't seem to touch on that part. Your answer details on the other parts except that part, could this be the problem?

Could you help?

Thanks, Clive

Your domain apparently has an MX record already:

500shops.com.		1745	IN	MX	5 aac5d12cbb3f4dafbd41668a303983.msv1.invalid.

Try replacing aac5d12cbb3f4dafbd41668a303983.msv1.invalid. with aac5d12cbb3f4dafbd41668a303983.pamx1.hotmail.com.—does that fix it?

Have you heard of this webmail? https://www.thexyz.com/webmail/