In keeping with the growing number of Windows Live services that are upgrading to the Wave 2 UI, the Windows Live Gallery is the latest to receive the facelift. Just in case you aren't familiar with Windows Live Gallery, it's the online site where users can personalize their Windows Live experience. The update also adds a new area for Windows Live Events gadgets.
The update has also added support for the Microsoft Points system, which is also used by the Zune and Xbox Live. It adds the potential for developers to not only showcase their software, but also get paid for it. It doesn't look like this capability is fully integrated yet, as I didn't see a way to give an existing gallery item a purchase price or submit a new item with a purchase price.