FAKE...
btw @alexanderthegreat, nice way to check ... but what if someone is really particular about all the spellings and grammar ?? what then ?
You can manually check for errors which no software can check for. For example, in this one, it says one must reply with "Login Information". But later, it asks for login info, Date of birth, country etc. It requires unnecessary and quite a bit too much information. Thats an indication its fake! Also, it says that there is too much "congestion"! Do you reckon a company raking in gold will ever fall short of server storage capacity???
Also:-
Warning!!! Account owner that refuses to update his/her account after two weeks of receiving this warning will lose his or her account permanently.
Companies would NEVER take this tone with their customers. They won't warn, they'd be polite.
Also, look at the signature: "Sincerely, The Windows Live Hotmail". Shouldn't this be Hotmail customer care as stated in the first line? Also, if I know MS properly, I reckon they'd've included more ®s and©s and TMs than the no. of characters!
Next up, google this syntax: "will never ask you password <insert company name here like yahoo or gmail or live>". You'll mostly find an official who will state clearly that "<insert company name> will never ask you for your password....." on some official blog or the other. If you find that, you can safely reply with rak007's reply!
But phishers mostly DO(as a necessity) commit grammatical errors, you need not worry!