You and your friend did the "right" thing up to where you said that you
quote:
We have unsubscribed all the "preference" indicators (subscriptions) we can find
That was where you went wrong! by doing this you have alerted them(The "Spammers") that you exist

, therefore you get targetted even harder

,
Hotmail is a bad service for recieving Spam ,have a look around the email page (preferences/ options) for anything about abusive email then you can "forward" it on for review?
if you think it has gone too far then see if you can open another email account for your friend at somewhere like Yahoo.com ,Lycos.com ,Excite.com for their private mail and leave the Hotmail account alone. I don't know if you can close it?(and reopen another? with a different screen name)I do not use Hotmail ,Someone else on this site will put you right on that question
This is a very useful email address for you starting right away "Forward" every one of those emails to here there will be an appropiate named button the address is?
abuse@hotmail.com
Don't forget "Delete" in future do not reply!!
when it starts easing up a little. then delete 1 or 2 addresses from your block/ignore list.you won't be completely Spam free in future it will take several weeks to notice a reduction,You can use another email address to handle the private stuff?
