Microsoft has gone all out and has started doling out the next generation of its blogging service – Windows Live Spaces. With a major update of this kind, Microsoft hopes to take the competition up a few notches with other social networking juggernauts such as MySpace.

The service will now include social networking features that would allow users to personalize their spaces with gadgets. Also, Microsoft has launched the Windows Live Toolbar, the Windows Live QnA beta and has announced the releases of enhanced safety services in the coming weeks.

The new service will allow users to customize their site with blogs, photos and music lists. Windows Live Spaces is designed to connect users to their real social network of friends — people in their Windows Live Contacts list — that is integrated across Windows Live Messenger, Windows Live Mail and other services — and introduce them to people through these trusted contacts. Users under 18 can only be contacted by those in their Messenger contact list.

There are several features that have been incorporated including a permissions feature that would let users decide how and who can contact them, through their Spaces site. These permissions would be shown beside a user's profile, and can be changed.