I have to deal with this all the time in my IT job. It's more likely you were "spoofed" than actually hacked. Hacked means that someone has figured out your e-mail password, meaning they can go and read your e-mail, send, etc. More commonly your e-mail address is spoofed, meaning a spammer found your address and is using it to send out spam. When they send it out, they use your spoofed name in the "from field" so that the recipient see's a legit sender address and opens it. More than likely someone elses computer got a virus and sent his/her contact list (with your good e-mail address) to the spammer for use in his spam program.
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Norm J
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