Scenario: 

Imagine that you have accessed your document from the Microsoft Office Live Workspace for editing using you Microsoft Word application. Now, the file you have accessed is displayd in the "File menu" as recently used file. Now signout from the  Microsoft Office Live workspace and click on the filename - that has a http://..... to your workspace - from the  File menu, which was recently used. The Microsoft Word document opens.

Security breach: By selecting the recently used file from the "File" menu in the Microsoft Word application, any one can access the content.

Challa Prabhu
Microsoft MVP(India)

That could certainly prove to be an issue .....

This is not correct.  First, let me explain the following:

Clicking the "sign out" link in the browser signs you out of the browser session, not the client session.  If you are interested in terminating the server connection when editing an online document from within Office, please close the Office client.

Now, if there is a case that the user is still authenticated in subsequent attempts it is because the user had selected "remember my password" at some point in the past on the Windows LiveID dialog.  Please use the Office Live Add-in to "Sign in as another user" to eliminate this.

Hi

I don't select  "remember my password" check box any time for any credentials. Therefore no assumptions please.

Challa Prabhu
Microsoft MVP (India)