Hotmail won't work after password change

Recently we had to change the password to hotmail. It was the kind where they make you wait 30 days and link to another account. Now it says the password is incorrect when we try to update it on the iphone (4S) and iPad Air. Rebooting does not work, nor does changing it in send and receive. It still says the password is incorrect but it is not. Thanks for any help.

In case you haven't yet solved your issue, here's what worked for me. I'm pasting below from what I just posted to try to help someone else.
After struggling for several more hours with my issue adding my MSN mail account to my new iPhone6's iOS8, I finally figured it out! Apparently, this applies to Hotmail as well.
Here's the fix, in case someone else happens to need it:
Instead of selecting Outlook.com or Other after tapping on "Add Account," select Exchange.
Enter the username as the email address.
Don't enter your password! From the desktop or laptop that you normally use to access your MSN/Hotmail email, log out of your email account and then log back in, go to your account settings, click on Security, and then request a temporary password for access via apps. That password will be a funky, long combination of random letters and/or numbers. It will appear on your computer screen right away.
Enter that password onto your iOS8 device.
Voila, you're done!

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Welcome to Apple Support Communities.
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Hotmail won't work after password change

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