Email - Spammers using my domain ?

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The web hosting thread below was started by handyman on 2009-08-23 16:20:22:

I’ve had a domain for ten years, recently I’ve been getting 100s of mail delivery errors in my default mailbox. This is because some spammer putting my domain in their return address field. What I want to know is;

Is the anyway to stop this ?

Will it do any harm ? I’ve had Hotmail block this domain form send to their server and they state it’s because it has had too many delivery failures recorded in a short time. I put this down to an open relay at my last host but I’m not too sure.

What do you think I can do if anything ?

TIA.

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