Sometimes if you post your problem at one of the blogs (
Outlook or
InsideWindows) -- in the comments under some appropriate blogpost -- you can get one of those guys to help out with your account troubles, bypassing the not-always-helpful Hotmail forums.
Maybe go to the "Upgrade from Hotmail to Outlook" post at the Outlook blog and ask there. Tell them you'd like to be able to upgrade but can't access your account, etc.
Maybe you'll get some assistance.
Btw, you will have to register first.