May 16, 2006
You can apply for 2000 MB hotmail through Windows Live Mail Beta at:
http://imagine-msn.com/minisites/mail/?locale=en-us
Step by step guide:
1) Visit Windows Live Mail beta Sign up page

2) Wait for a few days after sign up. You should receive a confirmation mail from Windows Live Mail beta.

3) Horray! Your hotmail now is 2000 MB!

Good luck and all the best!
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Read the important restriction (see below) on countries. I am not sure if exiting hotmail users are eligible.
Important note: The Windows Live™ Mail beta is only available in the following countries: U.S., U. K., Germany, Spain, Italy, Brazil, Japan, France, China, Canada, and Australia.
Comment by multidimid — May 16, 2006 @ 10:30 pm
I registered my Malaysia address with Hotmail. They upgraded my mailbox from 2MB to 2000MB after I filed in my application.
Comment by GOHtk — May 16, 2006 @ 10:51 pm