Windows Live users will also soon be able to aggregate updates from MySpace, though according to Microsoft, this integration is still a few months off.

Just like before, your friends will be able to see your updates from these services on their Windows Live home pages, though your friends can also opt-out of your updates, or updates from select services. If you are a prolific digger, for example, your friends can choose not to see an update for every single story you dugg.

If you have a Windows Live account, this link will take you to a page with all the new web activities you can now import. As usual, Microsoft is rolling these updates out slowly, so your account may not feature these new services just yet.

Functionally, the biggest update to Windows Live is that users can now easily invite friends on other social networks into their Windows Live network (and vice versa).

Web IM for Hotmail

In addition, Microsoft also released Web IM for Hotmail today in a number of countries, including the U.S., Canada, Germany, and Brazil.

Looks Like This Strategy is Working for Windows Live

In many ways, this update makes Windows Live into even more of a mainstream version of the current non-beta, non-real-time version of FriendFeed. You can easily aggregate most of your online activity and your friends can easily follow all of your updates on their Windows Live accounts.

According to both Compete and Quantcast, Windows Live has seen its traffic grow rapidly since it updated its services last November, and the addition of these new web activities will surely not hurt the site's traffic.

All of these applications are meant to complement the Windows Live online experience and work closely together. You can, for example, use Windows Live Sync to keep your online and offline photo albums in sync. Live Sync has replaced FolderShare.

We tested the new versions of the Live Essentials for the last few weeks and all of them represent a major update to the older versions.

Even if you don't typically use the Microsoft's Live services, installing the Live Photo Gallery, for example, is well worth a try thanks to its seamless integration with Live Photos and SkyDrive. This new version compares quite well with Google's Picasa 3 and also lets you upload photos to Flickr. Photo Gallery also ties in with other Microsoft tools like Auto Collage or PhotoSynth.

Windows Live Writer, on the other hand, is more of an evolutionary update, but it is the favorite blogging client for a lot of us Windows users here at RWW and the update makes handling media files a lot easier.

Also worth a look are the enhanced Live Toolbar and the Windows Live Messenger, which has received a major facelift. The Live Toolbar (IE only) now displays your updates from the Windows Live online services, including new messages and pictures from friends. You can also use the toolbar to sync your IE7 and 8 bookmarks between different computers.

Software Plus Services

The real selling point for the Live Essentials suite, however, is how well all the apps play together, both online and offline. Live Photos, for example, can use your Live Messenger and Hotmail contact lists for tagging faces, or the Live Messenger connecting to your status updates on your Live Profile page. The one Live Service that has remained behind, though, is Live Mesh, which seems to be on its own development track. We assume, however, that it will be merged into the Live services at some point.

According to Microsoft, Thumbtack was developed based on user feedback the company received after releasing Listas in 2007. Unlike Listas, however, Thumbtack does not focus on social bookmarking but rather on creating online research collections. Thumbtack supports both IE7 and Firefox, though Firefox users miss out an a few interesting features.

One major disappointment of Thumbtack is its bookmarklet. While its concept of saving a full text copy of a site is great in theory (though not novel), the bookmarklet manages to mangle the text of the page with JavaScript and doesn't copy videos and images. The bookmarklet expects you to highlight the part of the text you want to save, though even then, you can't actually scroll through the text in the bookmarklet. One nice features, though, is that can also just copy and paste items into Thumbtack right from your web browser (or any other program, for that matter).

The actual Thumbtack site, however, is quite well designed and allows you to drag and drop items to different collections, edit and tag bookmarks, and share your bookmarks by email and through a public web site.

None of these features are novel, but the interface does make using the site very easy. One cool feature of the site is the 'gadget' view, which allows you to quickly plot addresses from all your collections on a map, or to create plots based on data in your bookmarks.

It is important to know, though, that Thumbtack is clearly still an alpha product. Sometimes, for example, the bookmarklet wouldn't recognize new collections we had created or published collections wouldn't appear on their respective public websites. That, however, is something we expect in an alpha product and can be easily remedied by Microsoft.

<a href="http://video.msn.com/?mkt=en-US&playlist=videoByUuids:uuids:6a905d98-0332-4c3f-8b25-75737cd9b675&showPlaylist=true&from=shared" target="_new" title="Thumbtack Introduction">Video: Thumbtack Introduction</a>

Better Alternatives

Earlier this week, we looked at Qitera, which has a feature set that is quite similar to Thumbtack's, but while Thumbtack has a more interesting user interface, the actual bookmarking and information retrieval through Qitera is far superior to Microsoft's product. Thumbtack also lacks any of the social bookmarking aspects that make Twine, Delicious, or Qitera interesting. Not everybody, of course, is interested in sharing bookmarks, and for those users, Thumbtack is definitely worth trying, though currently, we would recommend Qitera, Delicious, or Ma.gnolia, or the Google Notebook, over Thumbtack.

Neither Dell nor Microsoft has confirmed the deal, but ZDnet attributes the news to "sources familiar with the arrangement.

Having already displaced Google on Lenovo computers earlier this year, and again in June with the Hewlett Packard deal, Microsoft is clearly looking at OEM deals to grow its search share, which in October 2008 covered 8.5 percent of the market, compared with Google's 64.1 percent.

October 2008 U.S. Search Engine Rankings: comScore

The report also speculates that Microsoft is considering dumping Live and using Kumo as the new name for its search business.

You can choose the amount of personal information you want to display in your profile and Microsoft gives you very granular control over what parts of your profile you want to share with others. You can, for example, choose to share your last name and location only with friends, but make information about your relationship status and hometown public. You can also choose to make some items only available to a small sub-set of your friends.

Favorites

Live Profiles also allows you to create an annotated list of favorite books, movies, and music. One of the nice features here is that Microsoft matches your text entry with images from its Zune catalog or Amazon's book store, and links to both stores directly, which gives this feature more depth than just a simple list of favorite things in Facebook or other social networking sites.

A Little Bit of Facebook, Twitter, and FriendFeed

Overall, it seems that Live Profiles and the new Windows Live Homepage will tie Microsoft's Live Services together into a very comprehensive social network. While it doesn't have widgets that let you poke your friends, it does have a broad set of applications like Photos,Spaces, Contacts, Groups, Calendar, and Events that can all be integrated into your Live Profile. You can also post Twitter-like messages (Microsoft calls them 'notes') to your profile that will then appear in your friends' accounts as well.

While Microsoft isn't directly marketing it as such, Windows Live is, in reality a formidable challenge to other social networks.

As one would expect, Live Photos integrates directly with Microsoft's Photo Gallery. This integration is similar to Google's combination of Picasa Web Albums and the Picasa desktop application. You can upload photos, manage your galleries, and keep albums in sync. Live Photos will also be directly integrated into the new Live Toolbar, which will display previews of pictures that you and your friends have shared on the service.

Features

The web interface lets you see your photos as thumbnails, thumbnails with additional information, or as very small icons. The overall interface is similar to Flickr's, with a photo-strip for navigating your album at the top right of the screen. Underneath the strip is the general information about the photo you are currently looking at, as well as the individual web address for this photo.

One of the niftier features of Live Photos is the Slideshow function, which changes its background color depending on the dominant color of the current photo. This is a subtle effect, but it shows that Microsoft spent a lot of time on getting the details of this new product right.

You can share your albums with very granular permissions, and also share individual photos. Every photo can be tagged and your visitors can also leave comments.

Very Few Negatives

Overall, the Live Photos team did a great job in developing a product that would appeal to most mainstream users. We did not run into any real problems during our tests, but we came across a few functions that were still missing from the product.

It would, for example, be nice if you could choose the picture to represent your album on the front page. Currently, the first picture in every album is automatically set to represent this album across Windows Live.

Also, it would be nice to see how much space you have left on your SkyDrive account while uploading your pictures.

Verdict

These negatives, however, are indeed minor and the combination of the Windows Live Photo Gallery with the Live Photo service looks like a winner to us, especially in combination with SkyDrive, which now features 25GB of online storage.

In combination with the new Live Profiles and Live Groups, Microsoft has created a very comprehensive suite of social online sharing tools and matching desktop applications.