You have to create a new account, press “sign up”, then copy the location of this link and paste it in the address bar of the window where you loaded the page from live.com. Now youll have live.com and a list of other localized domains for you to choose from.
By copying “this link” above, they mean copying the code snippet there at the signup page and pressing enter. More domains besides hotmail.com will be added to the dropdown, including live.com (where MS is going) and there are lots of early names left. I got my name and Ms. Grumpy got a sweet 4-letter shorthand name.
Mmm… early adoption!