Hi Rabbie,
There is a change to the URL that goes a lil something like this... Where you put the http://outlook.com/owa previously you should now put http://outlook.com/. Also the new MS live@EDU integrates (well I say integrate its more like transferring your users and emails from exchange to live) with Exchange in the sense that it can transfer all your users across to the new hosted email.
However I know some users will want the facility to use the integration tool to be able to view MS Exchange emails in Moodle, I think this can now be done through something called Hybrid Integration (or something like this) but I need to look further into this.
If anyone knows more please add to the thread.