Hi,
I think shrankumar's answer is almost right, what it is missing is the reverse, or outbound connection to the server. In the following, mychain can be any use chain or built-in chain like input or forward.
Try: /sbin/ipchains -A mychain -p tcp -b -s www -d 0/0 -j ACCEPT
(added is the -b switch for a bidirectional connection)
-also-
since hotmail (presumably also yahoo) is an https:// connection you will need /sbin/ipchains -A mychain -p tcp -b -s 443 -d 0/0 -j ACCEPT
(port 443 is the SSL port for http [i.e. https])
Note: to make it more secure against a DoS, accept only connections without the SYN bit set. You will need two statements, then, for each connection. Like: /sbin/ipchains -A mychain -p tcp -s 443 -d 0/0 www -j ACCEPT, and then: /sbin/ipchains -A mychain -p tcp ! -y -s 0/0 443 -d -j ACCEPT