Its called Live Mail, and I just love it. Its got a very intutive interface and its very similar to the interface of any old email client such as Outlook. The whole Live series of sites I think are very cool. The only site that I dont think is the best out there is their Local.Live (I think Google maps has a much better interface for viewing maps).
Live mail is currently in its Beta. If you would like to be included in the beta, you can do so from this website
http://imagine-msn.com/minisites/hotmail/default.aspx?locale=en-us. I am sure when it releases, its going to be a super hit!
And can you imagine all the behavior you are seeing is basically through scripts in internet stuff such as DHTML, very cool indeed.
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