Windows Live team has updated the Windows Live FrameIt Help Center page notifing that Live FrameIt is closing on Dec'15th. The message reads:
On December 15, 2010 FrameIt will shut down and the content you manage with the service will stop being delivered to your digital frame.
Rest assured that none of the photos, videos, or other content FrameIt delivers to your digital frame will be deleted. The photos and videos you have on Windows Live Photos and Windows Live SkyDrive will still be available, but to view them with your frame, you might need to use another service.
For information on how to set up your digital frame with another service, review the instructions that came with your frame, or visit the manufacturer's website.
The FrameIt team