LIVE seems to rank new sites higher immediately - just because they are new to the Web - which might be a good way to get noticed. But their algorithm looks like a kind of Blog Engine that somehow values "new" content over old, which is totally stupid.
For now, MS hasn't been able to attain the coveted status of OBJECTIVE or deliver competent results so far as the public is concerned.
'Live' online is like a Web-based roll-out to match the launch of Vista which, so far, is nothing but a problem-ridden facelift for XP in a new skin.
No doubt Microsoft has, or is gathering, every scrap of information ever published on the Net. The problem is that they have no clue about how to manage it - at all - even when they make themselves the default engine for their own software.
If you are the default search engine for 80 percent of the operating systems on the planet and can't compete with Google for relevant results, somebody should be toast in Redmond tomorrow along with their "appliance-based" implementation