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The Windows Team Blog posted a preview of the new Windows Live Essentials



Windows 7 has set a new benchmark for PC simplicity and reliability. More than any previous version, Windows 7 saves you time and helps you get more done. With this release, we wanted Windows Live to help you save even more time with the top things you do on your PC. So we designed Essentials to help you communicate and stay in touch with the people you care about, and to help you easily organize, polish, and share your photos and movies.

Windows 7 also allows us to unleash a new set of possibilities that weren’t available before. We’re taking advantage of GPU-accelerated graphics and animations, using the new Windows 7 "ribbon" user interface, integrating jumplists into the Windows 7 taskbar, and much more to provide you with a great experience.
  Preview of the new Windows Live Essentials