Since I'm still using the previous version of WLM, I can't say what 2011 should do. However it seems like it is still too buggy to make me want to upgrade. I've heard several people in the newsgroup say they switched back to the previous version:
Windows Live Essentials 2009
- For XP SP2, Vista, Windows 7, Windows Server 2008
Full Version Installer English Language version
http://g.live.com/1rewlive3/en/wlsetup-all.exe
Web Version Installer – English Language Version
http://g.live.com/1rewlive3/en/wlsetup-web.exe
Windows Live Essentials 2011
- For Vista SP2 with Platform Update for Vista, Windows 7, and Windows
Server 2008 SP2 with Platform Update Windows Server 2008 R2)
Full Version Installer English Language version
http://g.live.com/1rewlive4-all/en/wlsetup-all.exe
Web Version Installer – English Language Version
http://g.live.com/1rewlive4-web/en/wlsetup-web.exe
The newsgroup from which I copied those links can be found in WLM at the "news.annexcafe.com" server and group "annexcafe.general.windowslivemail"