Are you sure that your password has been reset.
I have a Hotmail account, and like you my Opera browser Wand should sign me in, but for the last week or so my (correct) password is being rejected.
I find now that I sign in, get rejected twice but that the same login detail is accepted on the third attempt.
This has started since Hotmail changed to Live Mail ( I think that is what it is called now), and it is consisted at two rejections and acceptance on the third.
Don't know if that helps you, but I reckon there is a problem at Hotmail, not with you or your password.