A while ago I was looking for a solution where I could maintain my own email address (firstname.lastname@example.org) whilst offloading hosting and storage. Most services charge a monthly fee for these types of services and the web access is pretty basic and I was looking for a Outlook Web Access user experience. I stumbled across a blog (apologies I can’t find this now) where someone explained that you can forward your MX records for your owndomain.co.uk to Microsoft Live Mail (most people remember / know this as Hotmail).
The link to this service is as follows https://domains.live.com/default.aspx.
You can buy domains relatively cheaply from various ISP’s and I would recommend someone like 1and1 who provide good administration pages to maintain your domains.
Another great feature of this offering is that you can choose to open your domain so that friends and family can have email on the same domain E.g. email@example.com.
All credit to Microsoft as they have been adding some excellent features such as Skydrive (25GB of Free online storage) and Photo Gallery as well as adding import functionality to upload old mails from Microsoft Outlook for the Live Mail Service.