With the recent release of Windows Live Essentials 2011 one of the upgrades that had to happen before that suite was released was the Office Live Workspace Beta being merged into Windows live SkyDrive.
From the upgrade notification email:
Your documents, workspaces, and any related sharing permissions have been moved to your Windows Live SkyDrive account.
- Store and share documents from virtually anywhere.
- View and edit documents using Microsoft Office Web Apps—the online companions to Word, Excel, PowerPoint, and OneNote.
- Take advantage of SkyDrive’s increased 25 GB storage capacity.
The Upgrade to SkyDrive FAQ/Wiki page has more info including these subjects: