A Microsoft Spokesperson told me in an e-mail that, Windows Live Messenger for kids is specifically designed to provide a safe entry in the Instant Messaging world." The concept behind this release is that parents are the ones who create the account for their children and are present when they sign in. The parents must then approve who appears in the contact list. There is a emergency call button in which the user can click if they feel threatened or harassed, which will notify the parents of the situation. Conversations are limited to text and emoticons only, with no file transfers or display pictures.

(Source: Neowin)