As I've mentioned, I don't get a ton of spam on Windows Live, but it does happen to me every once in a while. One way I personally combat it is to stay on top of my blog, guestbook, and profile note comments. Typically I check my recent comments every few days, and I can easily see and delete any spam comments (even for older blog posts) that I find there. In case I get busy and forget to check recent comments, I also have Windows Live Alerts configured to notify me via e-mail when I get new comments on my space.
When I do occasionally find spam lurking amidst my legitimate comments, my process for reporting it is pretty simple:
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First open the spammer's profile (click the user tile, right-click the View Profile link, and click Open in New Tab/New Window) to see the extent of his spamming activities. It's helpful to open this link in a new tab/window, because when you're finished reporting the spam, you can just close the tab and resume your activities. While you're there, copy his profile's URL (the http://cid.profile.live.com), which you'll use when filing the report.
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Next, scroll to the bottom of the page, and click the Report Abuse link, which directs you to the support page and form for reporting the spammer to the Windows Live team. FYI, the link takes you to forms that collect different kinds of information depending on your context in Windows Live, so you'll most likely want to use the link at the bottom of the Profile page, as opposed to the one in Groups, Hotmail, or somewhere else.
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Make sure that the E-mail Support form has properly captured your name and e-mail address, paste in the profile URL of the spammer, choose Spam as the type of abuse and Comments as the location. In your comments, clearly indicate that the user has posted what you consider to be spam in your blog comments, and request the team look at his profile for further evidence of his activity. Complete the CAPTCHA and click Submit.
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Finally, return to the original page and clean the spam off of your blog, notes, guestbook. There's a handy Delete link below each comment so you can make quick work of it. Remember to report the spammer before you delete the spam; otherwise you'll have a difficult time finding the offender to report him.
If you follow these important steps, you can ensure that the support team has the information they need to take action. In the end, we'll help each other by minimizing the impact of spam throughout Windows Live. Feel free to leave your comments below (no spam, please). 
- Greg
