Increase your Hotmail storage space to 250 MB

Log in to your Hotmail account

Click: Option -> Change Personal Profile

Change the location to:
Country: United States
State: Florida
Zip Code: 33101

Press Update button.

Go to this URL:
http://by17fd.bay17.hotmail.msn.com/cgi-bin/Accountclose

Click Close Account

Close all your browser

Log in to your Hotmail account again

Then, you can re-activiate your account.

Now, you should have 25MB storage space, then will increase to 250MB within 30 days.

*** (You may need to try the above steps twice to get 25MB stroage.)