Windows Live Photo Gallery:
- Improved image editing features like Panoramic stitch, histogram, and sharpen image.
- Improved tagging and organization including the ability to quickly sort by name, file type, tag or date.
- Publish photos directly to your photo galleries on Windows Live Spaces.
- Auto event grouping and tagging when importing photos (and video) from your camera to PC.
- Improved Photo Import Tool.
For full details, see The Windows Experience Blog and Microsoft PressPass.