I know this thread isnt about hacking hotmail anymore, buuttt..
back in my final year of highschool we had some html that looked exactly like hotmail, but with the page name as if its being loaded up from the cahe anyway the script took the username and password that people entered and emailed it to us taking them to a server error page then onto the real hotmail. We set this as the homepage on all the libraries computers (the librarians didnt know shit so it stayed this way) anyway over a period of like a month or two we quite literally collected hundreds of peoples email addresses and passwords from our grade and others.
needless to say what reulted was privacy invasion on an absolutely massive scale.