This really works, I do it 5 minutes ago.
-Close your MSN Messenger
-Open www.Hotmail.com
-Sign In
-Go to Options (Top-Right Corner)
-Go to Personal Options (Click Personal, on the left)
-Go to My Profile
-Change Country: Spain, Province: Madrid, Postal Code: 20085.
-Update
-Continue
DO NOT CLOSE THIS WINDOW.
On the same window in the "Address Bar" type www.Passport.net
-Go to Member Services
-Go to "Close my .NET Passport account"
-Click "Contact Hotmail"
-Click "Close my account"
On the same window in the "Address Bar" type www.Hotmail.com
-Sign In (with you closed account)
-Activate your account.
-Accept the Terms.
-Continue everything without selecting any checkbox. (You don't want to receive newsletter on hotmail right?)
Now you have 25Mb of space, and you can send up to 10Mb in attachments.
THIS DO NOT ERASE ANY EMAILS YOU HAVE BEFORE ON YOUR ACCOUNT.
Now you can change your country, province and postal code back to the original.
Edit: Leave Spain, until you get the 250MB update! (one or two weeks)
After a month Hotmail "supposedly" upgrades your account to 250MB.
quote:
*Receive 25MB at sign-up. Please allow at least 30 days for activation of your 250MB storage to verify your email account and help prevent abuse. Microsoft Corporation reserves the right to provide 250MB inbox to free Hotmail accounts at its discretion.
Edit1: I just translated a document a friend send, so they might be unnecessary steps. But I tested, before posting.
Edit2: @msn.com accounts cannot be closed from Passport.net, I didn't try other alternatives.