To publish photos directly from your mobile phone, first you need to:
  
1. Create a photo album in Windows Live Photos at http://photos.live.com/ (ideally with a short name)
2. Then, go to http://profile.live.com/emailpublish/ or select "E-mail publishing" from the Options menu on http://photos.live.com
3. Step 1 - Enter your phone's e-mail address (see NOTE 1 below)
4. Step 2 - Enter a secret word that will be hard for people to guess, but easy to remember
5. Step 3 - Select the photo album that you created in #1 above and type in a short word in the blank field
6. Step 4 - Select whatever you wish (this is only relevant for blogging from your phone to your Space) - Photos publish immediately
7. Step 5 - Find the e-mail address that matches your secret word from #4 and your short word from #5 (see NOTE 2 below)
8. Click the "Save" button
9. Create a new contact on your mobile phone with the e-mail address from #7, and name it something memorable like "Windows Live Photos"
 
 
 
Now you can test that everything is set up properly by taking a photo on your phone, selecting "Send in Message" (or something similar), and selecting the contact you created in #8. Once it finishes sending you should be able to go your album from #1 on http://photos.live.com/ and view the photo or share it.
 
NOTE 1: To find out your mobile phone's e-mail address, take a random photo and send it to your Hotmail address and then when the e-mail comes through, check the FROM address - This should be your phone's e-mail address (i.e. for a T-Mobile USA subscriber it might be <YOURPHONENUMBER>@tmomail.net)
 
NOTE 2: The final e-mail address format is: <<windowsliveid>>.<<album word>>.<<secret word>>@spaces.live.com
 
REPORTED ISSUE: On some mobile carriers, there may be some spacer or mobile carrier logos uploaded with the photo from your mobile that you may have to delete. I've seen this happen with T-Mobile USA and have reported this to Microsoft and hopefully they will resolve this in the coming months.
 
I've been waiting for this feature to come out, and now I'm so happy I have a great way to get the photos off my phone and share them.
 
Happy photo taking! - @innovate