Supposedly true. BTW, I don't have a hotmail a/c and don't know if changing such information to a fictitious one is in violation of their EULA. Anyway, enjoy !
A simple way to increase the size limit of hotmail account.
Login to your account
Go to Option
Click My Profile
Change Country to United States
Wait for browser to Load US Settings
Change state to Florida and Zip Code to 33332
Go to Language and Make sure it is English. Paste this link in Same Browser :
Wait until the screen says "Your Hotmail account is closed and ready to be deleted."
Click Close Account.
Go Back to Login and relogin to ur Account
Just reactivate ur account.
No email will be deleted from ur account and now ur account size limit increase to 25MB.