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http://folders.live.com/ is apparently live.
Come on Microsoft....Where is the custom error page?
The beta has not started yet, hence the site was not complete. It has now been taken offline. For further info + screenshots see my blog post:
http://www.liveside.net/blogs/main/archive/2007/05/12/live-drive-is-almost-here-windows-live-folders-beta.aspx