Deleting your Hotmail account is a very simple matter.
First, visit http://mail.live.com/mail/CloseAccountConfirmation.aspx?wa=wsignin1.0 and sign in to your account. Click “Close Account” to confirm your decision.
Although all of your e-mail messages will be deleted immediately, your account can still be reactivated within 270 days of its deletion. If you log in to your account within this time period, it will be reactivated. If you do not log back in within 270 days, the account will be deleted and your former account’s name will be up for grabs.