Now you can arrange the photos in your albums in the order you want them to appear by clicking Sort by, and selecting Arrange photos.

If you have Silverlight, you can arrange your photos by simply dragging them into the order you want. You can also sort your photos and files by name, size, date, or type. Now you can arrange the photos in your albums and slide shows and tell stories the way you want to tell them!

View photos of yourself and your friends

Coming soon when you visit your friends’ profiles you can view photos they’re tagged in by selecting “Photos of <your friend’s name>” from the menu under their profile picture.  You'll see this entry point in a few days!

Support for Windows Live Favorites
As you already know, you can keep your favorites in sync between computers using SkyDrive and the Windows Live Toolbar. Now, the next time you visit your favorites on Windows Live, your existing favorites will automatically move to SkyDrive. You can check it out here: http://favorites.live.com

As always, let us know what you think. Your feedback helps us decide what we do next!