Windows Live Favorites has been updated with a lot of new features some of which are:

1) A completely redesigned User Interface
2) Organize your favorites with Folders and by using Tags
3) Sort favorites by Top Favorites, Title, Tags, Last Modified and Address
4) Complete support for Firefox and a new/updated import for Netscape, Firefox and Del.icio.us
5) Pre-View Pane for favorites

And the best feature I like is the Auto Sync option which allows you to synchronize favorites online to a server so that you can access your favorites from anywhere. This feature was removed but is back again. I haven’t tested this yet and whether it will sync with multiple computers or not. But you can get the Live Favorites add-in from here.

Overall this is a huge improvement in the service.