As part of its push to introduce web-based versions of desktop applications, Microsoft is testing a new version of Windows Live Mail, which it is building from scratch and keeping separate from MSN Hotmail, writes CNET. The intent is to improve performance and enable desktop-like email features, as in Microsoft's Outlook, using AJAX application-development techniques.

Microsoft plans to support its web-based products with advertising as it tries to compete with internet powerhouses Google and Yahoo.

The new email version includes a spell-check tool; security features that rate incoming messages as "known sender," "unknown sender" or "unsafe"; a faster full-text email search engine; and in-box and contact list scroll feature to view more messages and entries.

Windows Live Mail also offers users 2 gigabytes of free storage, and users can keep their Hotmail addresses.