Is there any class for it i found some classes but they were old so not working.
I need a code snippet or a class for getting msn contact list with username and password.
And is it possible sending mail via hotmail instead of php's mail function
To get contacts list from all sorts of providers, being an email or social network, take a look at open inviter - http://openinviter.com - it supports a plethora of providers.
As for the "send via msn instead of PHP's mail function", if the mail provider exposes an API to do that, then yes (I don't know if it does though, but most likely not), otherwise I don't see that happening.