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Office Live has gone into Beta. Everything is free during Beta, two of the three options are charged for once you get out of Beta. So this maybe the best time to actually play around to find out how it could be useful for you.

Looks like they are going to keep the basic version free even after Beta. Not a bad deal for a domain name, 30MB storage, 10GB monthly transfer and some online web designer tools (Did I mention you also get 5 email accounts with 2 GB of space per account).