Summary: Every so often the Windows Live Hotmail interface changes and it's easy to miss where certain things went. I'll point you at Reply and Forward.
My Windows Live Hotmail changed a few days ago to a new version; a slightly new look according to them. I can't see how to forward messages and I can't reply them. I do not see any button to perform this task.
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Reply and Forward are pretty fundamental, so they certainly didn't disappear.
As the message from Hotmail said, they're just slightly different.
And perhaps in a different place.
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The biggest difference to me is that they no longer look like buttons, so that it's very easy to miss them. Here's a picture, with the new location and look highlighted:

If you happen to be looking at your message in "Full view":

Hotmail is in a constant state of change as it tries to both catch up with it's competitors as well as perhaps even innovate with new features. As a result, if you're a Hotmail user you should be prepared for periodic changes, it's just a fact of life.
Some changes are subtle, such as this one, and they can be easy to miss.
But there will be change.
Related:
Are free email services worth it? Free email services and accounts are convenient and ubiquitous. But free email services aren't the right place to keep your important information.
How can I get the old Windows Live Hotmail back? Windows Live Hotmail changes occasionally and typically there's no going back. If that's a problem, my question is: Why are you still using Hotmail?
Where did my folders go in Windows Live Hotmail? The recent redesign of the Windows Live Hotmail has many people reporting missing folders. It's likely that they're not missing, just hiding.
Article C3559 - November 8, 2008
you guys aren't the only ones... my reply, forward buttons are all missing... got a mac and runs beautifully - get rid of everything microsoft and your life will be much better - i promise.
Posted by: tony at September 4, 2009 8:34 AMhello, if I reply in Hotmail i loose the initial message??? HELP!!
Posted by: Jasper at October 19, 2009 12:39 PMits not there, the hotmail in the image shows the reply button, mine doesnt have the buttons help!
Posted by: bee at October 31, 2009 9:36 PMThis is a great way to get Windows Live IMAP support on your MAC http://fluentfactory.com/mboxmail-for-mac/
Posted by: tomb at November 3, 2009 2:30 PMIt seems the buttons are missing at least when using IE8, so this is bug. Try using another browser (FireFox, Opera).
Posted by: Higo at February 21, 2010 2:57 AM