Catching up on my blog reading and saw Om Malik has a brief comment on Live Messenger plus a screenshot.
This also sounds really cool! I'm not a VOIP user though it would save me a lot of money if I was so it's something I might take up in the near future. (Skype is installed on my home pc but I've never gotten around to testing it).
With all the focus on Google lately it's been easy to forget that Microsoft are still absolutely loaded and have the ability (should they choose) to copy and improve upon existing applications launched by competitors. This Live thing is going to be interesting to see, especially since Microsoft have the infrastructure in place to integrate this stuff with the desktop a lot more easily than Google.