Live Search has just released a new version (in the US, UK, and Australia) that includes an iPhone friendly site.  This is not an iPhone app, but an iPhone-friendly version of the Live Search site (m.live.com).  From an email outlining the new features:

• The entire search site is tailored for the iPhone.  It’s easier to see the search results and quicker to navigate between result sets like Maps, Local Businesses, Images and Web Results.
• Personalization: you can add widgets like a local weather forecast or stock quotes to your Live Search homepage. 
  To try it, click on “Weather” in the homepage or search for “BP” or “US:MSFT”.
• Saved locations: You can now save favourite locations like Home and Work. 
  To try it, click on “Near->Save My Location” to try it.
• NEW IN the UK   Walking directions:  Live Search now supports walking directions as well driving directions. 
  To try it, search for “HSBC” or “Tesco”, select “Drive to” to get the directions and then click on “Walk”.
• X-Rank: Live Search X-Rank is now available on mobile. 
  To try it, search for “Madonna” or “U2”.
• Mobile web results:  Mobile web results now appear on top of results with a quick description.  Search for “Hotmail” or “Facebook”.
• Encarta answers automatically appear on top of results.  We call this pub-quiz mode!  To try it, search for “when was bruce springsteen born?”, “what's the capital of kenya?”, “what's the highest mountain?” or “what's the population of uk?”?

We don’t have an iPhone handy to try this out and see if it is actually up and running yet, so leave us a comment if you do.