Adding Windows Live Contact
Let's start by adding Windows Live 'Contact' control to your website. First fire up your WD2K8, click on File > New Web Site and select 'ASP.NET Windows Live Web Site' from the template section. Give a project name and click on 'Ok'. Switch to design view. You will see a scriptmanager already placed on the page. As these services use AJAX for their work, a scriptmanager is required forAJAX.

Now open the toolbox from the development environment, navigate to the Windows Live Tool section and then, drag and drop the 'Contact' control to your website. That's all; your web page now has Windows Live contact integrated.

So now users who have Windows Live ID can access or see their contact list through your website. This tool provides your three different display styles: Tile, List, and TileList. You can also set a background and foreground color for the contact list.

Add Windows Live Messenger
Adding Live Messenger to your website is the same as adding Window Live Contact. Drag and drop the 'MessengerChat' control to your webpage from the Windows Live tools section. Then debug your project, and the local ASP.NET server will start. Then in IE your web page will be displayed.

Click on the sign-in link and it will open the MSN login page. Simply provide your username and password and click on Sign-in button. MSN now asks for a confirmation to send some information to your site. Accept the agreement and click on the Ok button. Finally you are logged in and you can see your online buddies and chat with them.

After you get logged into Windows Live account go to manage applications to upload video/audio files to Windows Live server	For handling security issues it offers you with the option of regenerating your account ID and key, incase any of these is disclosed.