Microsoft is expected to begin testing soon of Windows Live Messenger, an update that expands the consumer instant messaging software into areas such as Internet phone calling.

The revamp is essentially an expansion of MSN Messenger. It adds a number of features and continues the program's migration from a place to share short text messages into a manager for any number of modes of communication.

Various enthusiast sites, including Mess.be and BetaNews, reported that a private beta of Live Messenger is imminent, while another fan site, Messenger Blog, offered purported screenshots of the new software. Microsoft declined to comment on Monday, but had promised a beta version would come this month.

Microsoft showed a preview of the instant messaging program at its Live services kickoff early last month.

At the time, Microsoft demonstrated folder-sharing and voice over Internet Protocol (VoIP) features. The company later clarified that the feature that enables people to call a traditional phone would be a paid service provided by a partner. Microsoft is expected to partner with MCI, according to sources familiar with the companies' plans, though the partnership may not be exclusive.

As for folder sharing, Microsoft showed the ability for two buddies to have a permanent shared folder. Either person could update the documents inside, and these are then synchronised with one another. The company also demonstrated evolutions of Live Messenger that would allow it to act as a means of managing contact information and as a hub for social networking.

Plans for the Messenger beta were earlier reported by Microsoft Watch.