You`ve been had, Hotmail is accessed via a web page,it is not a programme on your PC and cannot therefore be updated as such.
You appear to have downloaded a malicious piece of software which has achieved its objective of denying you access to Hotmail.
I would suggest you download Microsofts Antispyware Beta, Lavasofts Adaware and Spybot Search and Destroy all of which are free downloads from
http://www.download.com/
Run these and hope they get rid of your Problem