Well, this isn't actually breaking news, but at the end of August, Windows Live ID added support for Windows CardSpace as a new way to sign in to any Live ID enabled website. Using CardSpace means you don't use a password to sign in, instead you send your Information Card.
Windows Vista users already have everything needed to use CardSpace. For Windows XP or Windows 2003, you will need to install IE 7.0 and .NET 3.0 with CardSpace support.
Once you have everything you need to use CardSpace, you can add an Information Card to your Live ID account by visiting the Windows Live ID Information Card management page. You also go to that page to make changes to the Information Card added to your Live ID account. Once you’ve added an Information Card to your Live ID account, sign in using the Information Card.
The support for Windows CardSpace is still in beta, so be sure to provide feedback through the MSDN Forums.