I can't see you mentioning this Ichigo, but have you tried opening Hotmail in another browser? Like Opera or Firefox?

You should also consider posting a Hijack This result to show which programs and processes are running on the computer. It could be malware.
You should also clear the Temp (Start - Run - %temp%) catalog (the items you get a warning on - do not delete) and the contents in the Temporary Internet Files catalog.
You should also take a look at the Internet settings and maybe do a restore to default in the advanced section.