From Microsoft's press release : 

Starting today, Nokia customers in 11 countries with compatible S60 devices can download the new suite enabling access to Windows Live Hotmail^®, Windows Live Messenger, Windows Live Contacts and Windows Live Spaces. Starting next year, customers who purchase compatible Nokia Series 40 handsets will also have access to these popular Windows Live services.

Nokia and Microsoft are empowering the “mobile lifestyle” by providing mobile customers with easy access to their world of online relationships, information and interests. By enabling access to Windows Live services on both the Nokia S60 and Series 40 platforms using standard Web services protocols, our mutual customers will have the power to seamlessly move between contacts, e-mail, messenger, phone calls, text messaging, camera, gallery and browsing, all in an integrated way.

For your information Live is currently available for some N-Series Nokia phones and only in some European countries (not even in USA).

Microsoft chose to abandon the PlaysForSure technology to concentrate on the top-down approach (hardware + software), Zune. Some of the company's PFS partners complained Microsoft abandoned them and Microsoft has admitted it. Some months ago Microsoft introduced the PlayReady DRM technology and we saw Nokia will be part of this in its upcoming Online Music Store. I wonder if Microsoft will continue to support both systems now or this approach of the two companies will change things for Zune in a negative way?

Flash presentation of "Live" on Nokia phones (See also the supported countries & phones  and more info how to install Live on your phone.)

Related articles:
Nokia to open an online music store
The new Microsoft mobile DRM  (PlayReady DRM technology)
MTV abandons Microsoft based URGE