Hmm, I have not been a fan of Windows Live up until now, but I have to say that I just installed the latest software for Windows Live, and I am pretty impressed so far.
I am writing this blog entry using Windows Live Writer, and the interface is very nice. It connected to my WSS based blog very easily and I am up and running...
Also, I am pretty impressed with Windows Live Photo Gallery beta. For a number of years I have used Microsoft Digital Image Suite which in itself has been a good application for managing my photos. Apparently that is discontinued, so this will be the replacement.
I haven't tried Windows Live mail yet, but I am told that it is pretty good.