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Hotmail Vacation Reply being sent

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Hi there I hope I'm not wasting anyone's time but any help or advice is greatly appreciated.

Got a brand new laptop on Thursdy 2nd, set it up with Windows XP SP3 , connected to my interent and downloaded AVG which I had on old laptop.

Come Friday evening (yesterday) though, I realised my Hotmail account has been compromised and someone/something had set my Vacation Reply to On and sending the following email to anyone who emailed me yesterday (including job recruitment agencies :) )

Dear friend:
We are wholesale company which can offer you laptops,Digital cameras,videos,GPS , cellphone,mp4,game console and many other electronic products with international guarrantee all over the world.
We can offer you both high quality products and good price. with the new beginning of 2008, we want to have a long term business with you/your company If you want to buy something ,please feel free contact us at:
our website : <http://www..com>
MSN : [email protected]
E-mail : xhotmail.com
Welcome to x.com! MSN: [email protected]

I replaced email add's and site with an "x"

I've changed password and set Vacation reply to Off now, but does anyone have any advice or knowledge of this? I've tried to research it, noticed other people have said that Vacation Reply turns itself back on again, and their contact list gets deleted, neither of these have happened to me as yet touch wood!

Does anyone know if this could be a virus on my brand new laptop? Or is it purely hotmail based and just a matter of changing password?

Thanks again, Laura
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