Windows Live Hotmail CAPTCHA Cracked, Exploited

eldavojohn passes along what may be the last nail in the coffin for CAPTCHA technology. Coming on the heels of credible accounts of the downfall of first Yahoo's and then Gmail's CAPTCHA, Ars Technica is reporting on Websense Security Labs' deconstruction of the cracking and tuning / exploitation of the Live Hotmail CAPTCHA. Ars calculates that a single zombie computer can sign up over 1400 Live Hotmail accounts in a day, and alternate account creation with spamming. Time to dust off Kitten Auth?