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Yes, you can do that. If you login to your outlook.com account, go into settings then "Your email accounts". Here you can add send only accounts with custom SMTP just as with gmail this removes on behalf of. I've setup my desktop outlook client to use my Outlook.com address but when the message is sent by Outlook.com it uses my own domain and no "On Behalf Of".

Hope that helps..

Thanks! completely forgot that was my problem with the old Hotmail connector, you couldnt set a specific SMTP

Derp :)

Yeah, I'm using my person domain with Outlook.com since Google started charging for Apps. It's working quite well, good enough for a single user at least... My only hang up had been lack of imap, but now we're all good!

Actually on behalf of is correct. If you know about DKIM and SPF then you'll work out what an arse pain all this is.