Yeah, You can access Google products (such as Google Docs, Picasa, Search History, Blogger, Calander etc) with Windows Live Hotmail ID, Yahoo ID, AOL, OVI or others.
Step 1:
First go to Google Docs & signout (if you are already signed in with Google Gmail ID)
Step 2:
Click Here
Step 3:
Fill up the form-
In “Your current email address” field write your Yahoo, hotmail or other email ID.
Fill up other things.
Signup!
Now you are ready to use google product with your existing ID.
**Use Picasa with existing ID:
First goto picasaweb.google.com
Signin with your Existing ID ex. Yahoo/Hotmail (which you have created with Google Docs)
Fillup the form.
Signin
Enjoy!
