Yawn? Visit www.live.com, nice domain, and you will see a "Windows Live" logo and a search box. You do a search on anything and you get http://search.msn.com/results.aspx?FORM=LIVE&q=anything. FORM=LIVE, may be the only difference.
Windows Live, is not Windows. Rather, it's "Internet based personal services to bring together your digital world." But Windows Live isn't MSN.com either. It sounds basically like a new Web portal.
Update: I see, you need to run IE on Windows to see the portal. A portal with a search box, and news, my web, rss and so on.