Go to
www.hotmail.com --> Click on "Can't access your account?" --> Select
"I forgot my password" --> Click on "Reset your password" --> Enter your
blocked hotmail ID --> Enter the given Captcha --> Select "Customer support" -->
Then below that you will be getting an option "Customer support", click on it -->
Enter your working E-mail ID and follow the instructions.
Note : No Need of filling "Billing Information"
Source:
http://ccm.net/forum/affich-653885-how-do-i-unblock-my-hotmail-account#7