I am impressed. Genuinely and profoundly impressed. The Office integration into Windows live is solid. Read all about it here: http://www.windowslive.com/Connect/Post/d3371a41-150b-4a5f-ac19-f5fbc045b472?ocid=WI_CL_12152
Yes, I work for Microsoft and specifically in Office but rest assured that as a true MS employee I am probably more critical of MS than anyone on the outside. Given how much people dislike Microsoft I am very hesitant to call something great unless I seriously believe I would think the same did I not work for the company.
Office on Windows live is solid and very cool. The editors are great. Being able to share and edit a OneNote with friends is fantastic. I am going to use this a whole lot.