The Windows Live™ Tools for Microsoft® Visual Studio® 2008 are a set of control add-ins to make incorporating Windows Live services into your Web application easier with Visual Studio 2008 and Visual Web Developer Express 2008.
What does this mean?
It means if you build websites with Visual Studio and you like to drag and drop controls on to your web form and then add some code behind you can now use a number of Windows Live services in a very simple way.
To demonstrate I have created a short video showing how simple it is to add the Silverlight Streaming Media Player control to your ASP.NET website.
As one of the developers working on the architecture and code behind these tools I would love to hear your feedback.