Anyone that uses hotmail deserves all they get. 
not that i've got anything to hide but what are the consequences of this and should i be worried as ii have had ma hotmail account since i've been on the net
:-/
Yes you should be. I don't want to scaremonger but it's not just that your private e-mails can be read by someone else, they can use your e-mail address for spamming millions of internet users with junk mail, pornography, viruses etc. all in your name.
Ah but anyone can do that, pretty much.. All you have to do is forge the 'From' address on the outgoing email and voila, I can send email as you, the queen, anyone. You don't even need any special tools - heck, you can do it with Windows Telnet if you're so inclined 
SPF records are supposed to help stop that, but until they are 100% implemented on the 'net (which is a long time off, I reckon) it'll still be easily possible.
Email is not secure, and unless you inspect headers and check SPF records, the sender cannot be trusted to be legitimate.
You are very correct in what you say, however that method will not hide the true source of the e-mails it only hides 'from' address.
I was refering to the scenario where the hacker would send the e-mail directly from the victims computer.