If you’ve used the excellent Office Live Workspace you may be aware that there’s a plug-in you can download for the Office client applications (Word, Excel, etc) that allow you to save files to and open files from your Office Live Workspace directly from within the applications.
For example, if you install the plug-in you get some new options in Word for Office Live:
So you can save / open documents in the cloud as easily as if they were stored on your local hard drive.
Now while this is really useful the initial version of the plug-in had some problems in that it was a bit slow to use and tended to request credentials too often.
In order to address this the Office Live Workspace team has just released a new version that makes the whole process a lot slicker, especially if you’re on XP and earlier versions of Office (the Vista / Office 2007 combination was already pretty slick). Read all about it here.