Windows Live ID is a free online service that lets you create a single e-mail address and password to sign in to all sites and services on the network. This means that you don't have to remember numerous e-mail addresses and passwords.
Windows Live ID uses industry-standard security technologies to encrypt your password and e-mail address whenever they're transmitted over the Internet. After you sign up, your Windows Live ID personal information is shared only with MSN sites, and only when you have given consent, as described in the Windows Live ID Privacy Statement
To learn more about Windows Live ID, go to the Windows Live ID Account Services page.