With Outlook Connector, you can use Microsoft® Office Outlook® 2003 or Outlook® 2007 to access and manage your Windows Live Mail or Office Live Mail accounts, including e-mail messages, calendar, tasks, notes, and contacts.
A new beta 2 of the Outlook Connector offering free calendar synchronization
How to Configure:
First download from above location, then install it.
Now Open Outlook 2007, on the configure screen, tick Manually configure..