Folks,
Hotmail is having issues right now. Huge issues. And I have a sinking feeling all these trouble tickets and hijack reports are taking away resources and time that needs to be spent finding out what in hell is really going on.
What I can tell you that you might not know is that Hotmail has a plethora of servers, therefore login issues on one Hotmail account versus another one are not uncommon - doesn't matter at all what computer YOU are using. For example, JohnQ's e-mail server might be in a completely different building/state/country than JohnR's, even though both are Hotmail accounts.
Several times over the years I've had login issues with at least three of my Hotmail accounts (and thanks again Microsoft for doing ANYTHING about spam in the first place to prevent me from having to have 20 Hotmail accounts to begin with). Usually the problems are very temporary and resolve themselves within mere hours.
However... with all these reports of mystery-spam, "TOS violations", and closed accounts I'd guess many servers are simply becoming overloaded with traffic from compromised accounts and your e-mail address happens to be parked on a Microsoft server that...gee, I dunno, is somehow being attacked?
Again, I do not work for Microsoft so it's just speculation. It would be nice if someone would just be honest about what's really going on rather than dispensing generic advice from a form letter and causing all of us to panic...