Check out their new Surface Computing! Alas, only for businesses and such for the moment, but they hope it will come down in price until common folk like you and I can afford one.
They’ve also released betas of Messenger, Writer, and Mail. Prepend all those with “Windows Live” to get their full names. Writer is a pretty decent piece of software for blog posting, and it integrates with all the major blog providers, not just Live Spaces, which is a welcome relief. I’ve been using it for a while and it’s an excellent tool.
The Messenger update seems mostly cosmetic though, so it’s hard to see where they’re going with it.
I’ve also been invited to try out Popfly, which is a way of building Web 2.0 mashups without writing any code. My first impression is that while you can build something that displays the last 10 Twitter posts on a map based on where they came from, it’s hard to do anything too complex.