Mail is being sent from somewhere else with your address being forged onto its "From:" line
-Full name:
Look at the "From:" on the junk mail your friends received. If your e-mail system normally sends your mail showing your full name followed by your e-mail address in
Your address book used:
-If many of your personal correspondents are simultaneously getting the same junk mail from your address, that's a pretty sure indicator that it's coming from your account, because the sender has access to your personal address book.
-Someone otherwise forging your address onto their "To:" line would not be able to target all of your friends at once, and would be very unlikely to hit any of them at all.
Launching Server
-Look at the full headers (usually hidden) on one of the junk messages as received. Among the headers are a bunch of postmarks, lines beginning "Received:". The oldest one (farthest down the list) explains how the message was first launched into the e-mail network; subsequent ones (farther up toward the top) track its travel to you. If the early ones name a server on your e-mail provider (Yahoo, Hotmail, Google, or whatever) that tends to suggest that your account was hacked.
-done by Eagle