Spam email from somewhere but claiming to be my mom

well I have a problem, or more precisely my Mom. I am fairly certain that her email hasn't been hack, in the way the she has lost control of her email, but every now and then people on her contacts list (including me) get weird emails.

The emails claim they are from her email address, but the twist is that they are not. The emails (from what I could tell) start from a server in cascadeaccess.com, then tell/spoof the email client that they are my mom.

I have attached the email source (in plain text)

how do I get this to stop happening.
Anti-Virus AVG hasn't reported any problems
We have changed the password of her email just in case.
Should I “nuke” her laptop and reinstall windows?

x-store-info:J++/JTCzmObr++wNraA4Pa4f5Xd6uensaUSop/gUCq9IjlptURk4vuVn5wMM99Rc5HELDYYyzvCKrSkQGE7FH3QoR/u9rlVSesUrilr/CT4cpiAT++32Kl1pVONxEdf/pQ4rSSQsmQ0=
Authentication-Results: hotmail.com; spf=softfail (sender IP is 72.19.50.12; identity alignment result is fail and alignment mode is relaxed) [email protected]; dkim=none (identity alignment result is pass and alignment mode is relaxed) header.d=hotmail.com; x-hmca=none [email protected]
X-SID-PRA: [email protected]
X-AUTH-Result: NONE
X-SID-Result: NONE
X-Message-Status: n:n
X-Message-Delivery: Vj0xLjE7dXM9MDtsPTE7YT0xO0Q9MTtHRD0xO1NDTD0w
X-Message-Info: NhFq/7gR1vTVsH9OntToWNVRVv3W6S7wYTRU/0WxO1hmCPQ3B9WAQrkNZ/iYLIIhTZvCezqpT/BgPY1waerb8n/8REvE6ftOBq4qWdpJPYYzSQkk1ife/YwOR6B3f76ZSbH9W+pdiQxqmSCvHL8jxOPq5KtsjMypDpkRsHc2OTs0BYnVgPwjaicg25Jhb1LLiyS+AxQVWi2zC8Rwf2yYA1BSCADbZOYR
Received: from ces-svr-it-mmail2.rcdws.com ([72.19.50.12]) by BAY004-MC2F53.hotmail.com with Microsoft SMTPSVC(7.5.7601.22751);
Mon, 30 Mar 2015 10:33:43 -0700
Received: (qmail 3546 invoked from network); 30 Mar 2015 17:33:40 -0000
Received: from 36-224-78-189.dynamic-ip.hinet.net (HELO cascadeaccess.com) ([email protected]@36.224.78.189)
by ces-svr-it-mmail2.rcdws.com with SMTP
(cfed3caa-d702-11e4-bbc2-0f2171e7d1d7); Mon, 30 Mar 2015 10:33:40 -0700
From: "Priscilla 123" [email protected]
Content-Type: text/plain;
charset="us-ascii"
Content-Transfer-Encoding: quoted-printable
Mime-Version: 1.0 (1.0)
Subject: from: Priscilla 123
Message-Id: [email protected]
Date: Mon, 30 Mar 2015 19:33:37 +0200
To: "james 123" [email protected]
X-Mailer: iPhone Mail (10b329)
X-MagicMail-UUID: cfed3caa-d702-11e4-bbc2-0f2171e7d1d7
X-MagicMail-Authenticated: [email protected]
X-MagicMail-SourceIP: 36.224.78.189
X-MagicMail-EnvelopeFrom: [email protected]
Return-Path: [email protected]
X-OriginalArrivalTime: 30 Mar 2015 17:33:43.0318 (UTC) FILETIME=[AB1C3B60:01D06B0F]

Hi james

RANDOM LINK TO A SPAM PAGE OF SOME KIND

Priscilla 123

Sent from my iPhone