The New Microsoft App Upgrade can be configured using a regular Hotmail or Live email address. Using a regular email address will only let you sync your contacts and calendar. To be able to use Lync and the Sharepoint services, you actually need an id associated with the Lync/Sharepoint server.
The Microsoft App also includes the Exchange Active Sync service which allows you to sync emails using OWA (Outlook Web Access) which is good for people who cannot access their emails using the Exchange Server client. You can use the OWA Url and corresponding user/password for syncing emails.
To configure the Hotmail/Live account, please use the following credentials -
Email: <Your Hotmail/Live Email Address>
Password: <Your Password>
Username: <Your complete Email Address>
Do respond back if you have any queries.