Moodlerooms developed an plugin called "Microsoft Live Services Block" to connect Microsoft's Live@edu services and Moodle. With this integration, Moodlerooms makes the rich functionality of Live@edu directly accessible within the Moodle 2.0 and 1.9 environments via single sign-on.
The Microsoft Live Services Block for Moodle provides an integration with Windows Live Services allowing users to log into courses using their Windows Live ID and display Live Services on a Moodle site. Users can see and create emails and calendar events with Outlook Live or Windows Live Hotmail, and access Windows Live Messenger chat, Bing search and more within a course.
Another, plugin, Windows Live authentication allows you to simultaneously log in to your Moodle course and MS Live account so you only need one username and password. You will see a link to "Sign in with MS Live ID" to the right of the Moodle login. It authenticates your Windows Live ID and signs you into your Moodle course, giving you access to the features of the Microsoft Live Services block from within the course.
You can download the windows Live Services Block and Windows Live authentication plugins here.