The attached picture shows how the windows live id module process flow is implemented. It is meant as a guide for anybody that wishes to contribute ideas on the further development of this module. This is also based on the current implementation of the windows live id SDK. From what I have understood at the Windows Live forums - the SDK itself is in a beta stage and as that evolves so will this module. The project page for Windows Live ID module is at http://drupal.org/project/winliveid.