After installing the new Windows Live Toolbar, I installed some of the add-ins that I usually wouldn’t. Things like the Phishing Filter, Games and the Windows Live Favorites. I’m not sure when Live Favorites was refreshed, but the new version is much better. It support both folders and tags – previously it just supported folders. There’s a reason why tagging has taken off – it makes sense to people. I started using Live Favorites but gave up because the folder approach is so much less flexible.
The other new feature is that the Live Favorites Add-in now sync’s your local favorites with your Live Favorites. Not sure how that will work if you primarily use tags on Live Favorites, but I guess I’ll see.
Finally, Live Favorites can be shared, but there doesn’t appear to be any way to search shared favorites. Am I missing something?