Michael Arrington at TechCrunch has more details plus screenshots:

"Microsoft’s Live.com is launching a preview version of a new service called Street-Side today (link will be live around 12 PST today). Street-Side will augment the Live Local service and give street level views of the entire city."

Update: The preview seems to be live already....here's the Street-Side view of the W Hotel and Starbucks on 4th Ave and Seneca Street, Seattle:

Robert Scoble points to a Channel 9 video with the team showing how this was put together.

preview

Update II:

The MapPoint team has some info too....

"You can use your mouse or keyboard to control the car".

I didn't realise this! I should play some more.

Sean Rowe, program manager at MSN Search explains the 'preview' bit:

"This technology preview is just that – a means for us to get a feature we are working on in your hands to play with and provide feedback on, before it is ready for prime time integration into the Windows Live Local site. "