After initially launching this feature in just a few select countries, Hotmail now offers all users complete Facebook chat integration with their accounts. While a lot of people might already use third party messenger applications like Trillion or Adium, with this latest update, Hotmail makes it easy to chat with your MSN and Facebook friends from any computer in one place, without having to download additional software.

It’s clearly been a popular move, as they mention over on their blog, over 2.5 million more people have connected their Facebook accounts to their Windows Live accounts since the update.

If you want to take advantage of this feature, connecting your Facebook account is a simple process, and by so doing you’ll be able to chat with friends from Facebook, see their status updates and share your Windows Live status messages and updates with your Facebook friends. You will also be able to publish photos to Facebook and tag your friends using the Windows Live Photo Gallery.

Of course by so doing, you are granting Windows Live access to the basic information in your Facebook profile including your name, profile picture, gender, networks, user ID, list of friends, and any other information you’ve shared with everyone, as well as your profile information, photos and videos, and even access your friends’ information, including birthdays, current cities, work history, websites, photos and videos of them.

If, in the future, you want to revoke permission, you can do so by going to services, under which your connected services are listed.

After you’ve connected your accounts, you may need to sign out and sign back in for it to take effect. Once it does, your Facebook friends will appear on your homepage and your Facebook contacts will be listed separately under your contacts, and you can begin to chat with your Facebook friends from your Hotmail account.

Are you going to connect your Windows Live and Facebook accounts? What do you think of this latest update? Let us know in the comments.