Hi there happy to help.
This is not a bad thing in the long run for you.
Hotmail is pretty good at detecting compromised accounts and blocking them right away.
What has happened is someone has gained access to your account.
By blocking it, this saves you from having embarrassing spam sent from the account.
Alot of other free email services don't do this effectively.
So people end up having all their friends receive spam, scams, and very inappropriate material from them.
OK, let's get you fixed........
What you need to do is the following.......
You need to fill out a Windows Live Account Recovery form.
Fill it out completely, detail your situation and send it in.
To warn you, hotmail IS a free service and responses to these forms, are not lighting fast.
You can find the form here...
A couple more pieces of advice so you can avoid this in the future........
Make sure you are running antivirus software on a regular basis.
Here is a good free program if you don't have one .......
Never give out email account info. If you receive an email asking you to verify account info, this is ALWAYS a scam.