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From Chris Pendleton's Blog:
No longer is Photosynth just a Live Labs research project - it no(w) has full funding and backing from the Virtual Earth team. It helps that we get all of the people that worked on it too.
Recall that Photosynth can take a pile of photos of the same location/feature, "match" them up, and display the "photos in a reconstructed three-dimensional space, showing you how each one relates to the next." The general consensus, with which I agree: its closer to being a real world product. It's a good thing Chris mentioned this; the Photosynth blog's last post was Sept of last year! I guess they've been busy with other things.