Your contacts will still be seen on Live even if you are booted into a clean install of Windows. The only thing you would lose is what is stored locally by importing WLM into OE or Windows Mail. Otherwise your contacts, mail, drafts, even sent mail is stored online.
SkyDrive is another option for storing things online as well. When trying to get things transferred onto a virtual machine running on a flash drive someone posted a guide for the Gladinet Cloud Desktop which could be the thing you are looking for. http://www.sevenforums.com/tutorials...e-desktop.html
With the local folder seen you can upload things you want to backup for later use.