You have to contact hotmail, explain to them you are no longer in control of that email account, and persuade them to delete it.
However, I looked through "contact hotmail" (live.com, msn etc) and I cant find a way to do that. There is also no phone number you can talk to Customer Support about hotmail. It is just a sh1tty freemail with no live person CS afterall.
Therefore, consider that hotmail account lost, and consider all the email accounts in the contact list of that hotmail account lost as well - although spammers did not gain access to those accounts, the information itself (the addy, name of the contact) is already gold because spammers can spoof names of email addys while using these genuine addy names in the headers in order to send spam to unaware people.
So, tell everyone in her contact list to warn everyone on their own contact list about possibility of receiving spam mail with their email addy, and if possible, persuade them to close their own email accounts (yes, dump it not just change the password, cuz there will potentially be spam mail with the sender header using their addys - when other ppl start receiving spam mail with familiar email addy, they got dumped into the spam folder and become sh1t anyway).
Moral of the story:
NEVER reply to phishing emails asking for logins, PW, personal info etc. (her account was never hacked, more likely she voluntarily gave out her email login / pw)
NEVER put any real personal info (OK we need first names, but no last names, no home address, no phone number, no credit card numbers, no license plate numbers, no .....) in any free webmails - that includes your own info and info of your precious friends and family.
All email servers store way too much personal info nowadays - this is exactly like the (previous) situation with social sites like MySpace, pervs look up home addresses of teens and little girls!
