If you have stored or created Office documents in Office web apps and saved them on SkyDrive, you can now easily access these files from inside any Office 2010 application. Office Live Files is a free Add Inn for Microsoft Office which allows you to access file stored in SkyDrive right inside Office applications like Word, PowerPoint etc. Office Live Files was tested on Windows 7 and works with .NET 2.0 or higher and Office 2000/2003/2007/2010.
Once installed, you need to sign in with your Windows Live ID to SkyDrive. Once you have logged in you can view all the files or upload new files.
In short, the Office Live Files add-in provides you with a web interface of SkyDrive right inside Office applications. You can click on any document and then open it in Word, PowerPoint, Excel or OneNote using this app.