Microsoft announced this today
http://www.microsoft.com/presspass/press/2005/nov05/11-01PreviewSoftwareBasedPR.mspx
http://www.microsoft.com/presspass/misc/11-01LiveSoftwareFS.mspx
I'm sure I've seen this in development - the following link looks familiar
http://www.live.com/
At the moment all that is on offer is a customizable homepage and a replacement for Hotmail. Seems a bit early to be launching a beta - guess they are worried about Google and co getting too much publicity.
On its way is OneCare - I talked about this previously
http://www.noelwatson.com/blog/PermaLink,guid,8f69e4f8-de2c-4c2a-90d0-bf16932fa013.aspx
I wonder how much of this will be free - I reckon it will be a monthly pricing structure for apps such as OnceCare.
XBox Live arcade looks pretty interesting - I love the retro gaming
http://www.xbox.com/en-us/livearcade/default.htm
It's interesting to see Microsoft now starting to offer some of its services over the web. In the past Office was seen as too monolithic to be offered over the web - maybe Office 12 will be different.