For the past three days I have been unable to use the reply, forward, reply all and new message functions in hotmail. I am only able to receive and read mail from my inbox.

Have you tried using other computer with different connection? If you haven't, please try it first and let me know if this issue recurs.  I’d also suggest that you optimize your browser. Just to be sure that this is not contributing to your problem.

BTW, I've moved your post here at the Mail Delivery Forum.