It's possible that you were victimized by the latest Malware attack. Check out this Solution article for more info about it and for ways on how you can make your account and computer more secure:
http://windowslivehelp.com/solutions/safety/archive/2009/04/29/recent-reports-of-account-hijacks.aspx
As a safety measure, make sure the computer is updated. To get the latest security updates, visit our PC Safety line link:
http://www.microsoft.com/protect/default.mspx
Now, about your sending issue, please post your e-mail address so I can validate if the account has been genuinely blocked or if it’s a false alert.