It was most probably a phishing scheme, I have noticed a lot of spam mail coming in recently telling you that you can check who has blocked you on Messenger.
As an IT manager I checked the sites that were linked into the e-mail, when you get there it requests you to enter your MSN/Live id and password, no doubt many people fell for this and did so.
There really needs to be more done about such attacks really, yes the consumer needs to be aware but these hosting services that are just allowing these sites to be built without taking any ID from the builder of the site are perpetuating the problem. It is simple really if you want a web presence, prove who you are, this would cut down a lot of these scams