The live.com folks recently blogged about a recent change to the site to support inline images which states

we've been listening to your feedback and one of the main things you've been asking for has been more pizzazz on the page. we just shipped something that hopefully adds a little bit of that :)

now you can view embedded images in rss feeds inline on your live.com page:

- if you have 5+ headlines you get a smaller image that rotates every 20 seconds

- if you have 1 headline you get a larger image

 

we'll let a picture do the rest of the talking :)

As you can tell from the screenshot, the change definitely jazzes up the look of the page.