Hotmail is a free (i.e. advertiser supported) web based e-mail system provided by Microsoft Corporation.The way to change your Hotmail password is to change your Microsoft Passport password.
Changing your Microsoft Passport password will change your Hotmail password, MSN password and MSN Messenger password.
Steps to Change Your Hotmail Password
•    Login to Microsoft Passport
•    Go to the Microsoft Passport Network: Account Services Home page
•    Select the Credentials menu
•    Select Change your password
•    Enter your old Hotmail password
•    Enter your new password
•    Enter your new password again
•    Press <Continue>
•    Enter an alternate e-mail address, if you have one
•    Enter your alternate e-mail address again, if you entered it above
•    Press <Continue>
•    Press <Done>
These steps to change your Hotmail password will only work if you know your <i>current</i> Hotmail password.