If they have denied this, it can be very difficult if not impossible to get the account back if you cannot verify with the form. I have spent many hours researching the options and have helped hundreds of hotmail users that are in your same position.
The methods I am going to share with you are not made public by hotmail but they do in fact work. You will need to be patient though as it could take a couple days. Considering you are about to lose your accounts though, a few days is worth the wait. It is incredibly important that you very carefully follow my instructions so you complete the procedure correctly.
An option is to reach out to a hotmail representative on their forums, they have access to look deeper into the account and sometimes can help in these situations.
First you are going to need to create another email address with Hotmail. Please go to the following link to create that.https://signup.live.com/signup.aspx
Once you create the new address do the following.
Please click http://windows.microsoft.com/en-US/hotmail/hotmail-support
Next choose "Your account has been temporarily blocked"
Tell them you have not been successful with the recovery form.
Be sure that under "Enter the email address (Microsoft Account) affected by this issue:"
You provide them the email address that is blocked and not the new one.
Under ‘Enter your contact email address:' give them the new account you just created.
In most cases they will respond in 24-72 hours, depending on how many requests they have waiting before yours.
A moderator will take a closer look at your account and work with you to try and help you get back in.
As well as sending the message directly to the moderator it can sometimes be quicker to reach out to them in their public forums and they may message you or ask you to message them privately with more information.
Go to the following link and click ask a question on the upper right hand side of the page. A box will appear. In that box type what has happened. Remember to be very polite and give as much information as you can. Here is the link to the forums:http://answers.microsoft.com/en-us/windowslive/forum/hotmail
Microsoft/Hotmail takes account security very serious which is why they make this so difficult and make you confirm all of that information. It is to prevent unauthorized access to your account.
I hope that this information helps you get into your account. I would kindly ask you to remember when you are asked to rate my service you are rating me personally. You are not rating hotmail or their procedures or your frustration with the situation which I know is difficult.
If you require any additional information at all, or have difficulties with my instructions, please do not hesitate to let me know.