Yes, finally I received my mail yesterday that my Office Live Workspace is ready!
It wasn’t the same what I had expected. The first and foremost thing I expected was,
1) Online creation, editing of MS Office Word documents, Excel sheets and Office Presentations
If you think that is what you would get with Office Live, then you are wrong. Rather, MS Office Live Workspace is a place to upload your MS Office files, share them with your friends, and allow your friends too to edit them if needed. From thtir website,
Office Live Workspace is your online place to store, access, and share 1000+ documents. Use it to distribute meeting notes, work together on group assignments, or simply store documents that you can access from any computer.
As you can see in the above image, you can have multiple workspaces and have documents,presentations etc., in them
If you ask me, what is there in creating workspaces, then you are wrong. There are many templates for workspace available for you to start with
So, if you choose Meeting Workspace
You can see the template created some documents, presentation and also to-do list 🙂
All is nice so far. How do I edit these? Microsoft has released an Office Live plugin which enables the MS Office Suite to work with Office Live. You can grab it here . If you are using Vista, don’t forget to install the Offie Live Workspace update for Vista
Once you install the plugin, you can see the Office Live addition to the menu
You have to login to open or edit or save to Office Live workspace. The open dialog box takes you directly to workspace 🙂
You can browse your workspace and open the documents you want
It works well with both Firefox and Internet Explorer 7. Please note that my screenshots were taken from Firefox 😉
Please note that this is not similar to Google Docs or Zoho . This is integration of Office to the Online world. I am not a fanboy of creating documents online while surfing and I know my internet connection is not to be believed at all times. Yes, Yes, there is automatic saving, but still you don’t get the real thing that you get while working at your system offline.
Microsoft Office is a great productivity tool (especially Office 2007 suite) and this is a great addition to have with it 🙂
C h a k s' C o r n e r 
cool stuff 😉
well, your workspaces are my google docs folders from what you describe here. nonetheless, google doesn’t yet have the folder sharing ability (one has to share each file one at a time) but i have sent them the suggestion a while ago and well it should be on its way i guess.
And since you landed yourself a link in my comments here’s my comic image of the whole ms office live workspace thing: here. Again, don’t take it seriously, it’s just a parody 🙂
eydryan, if you look at Sharepoint Services, they have the similar setup which you can do in your domain. The only difference is Microsoft has started doing that for the public masses 🙂