Engadget Reports:

[...]

http://www.blogsmithmedia.com/www.engadget.com/media/2007/06/ms_sv_1.jpg
Leave it to Redmond to ante up with a big, gas guzzling SUV for its "street-side view" purposes. Recently caught cruising in Northern California, this hulking Chevy makes Immersive Media's Google fleet (family mini-van and college grad's first car) look pretty tame. Now if only they could snap more pics of Ballmer pulling this face. Take another look after the break.

http://www.blogsmithmedia.com/www.engadget.com/media/2007/06/ms_sv_2.jpg

I'm not sure it belongs to Windows Live Local.
See here:
http://facet-tech.com/partners.htm

(They just paste some Live stickers on it.. :P)

That could be, but I bet Microsoft has already packed up some street view type imagery and is just waiting for some of event to release it...in the meantime, we have Google Street View sightings:

http://streetviewgallery.corank.com

Microsoft previewed a street view function in early 2006. http://preview.local.live.com/

I have read, though I can't find it now, that one reason they have not released it yet is they are going through imagery and removing things like legible license plates on vehicles.

Obviously Street View in Google Maps is more elegant, but it was released a year after the MS preview.

TonyB