Windows 8, for the time being, is still in internal development. According to WinBeta, Windows 8 Build 8042.0.110707-1940 has been compiled. It is a Milestone 3 Build and was compiled on July 7th.
It appears that some of the features are broken, but in reality, have yet to be updated with the rewritten code. That code will get added in on a Win Main build. Instead, work is being done to ensure the promised new UI is fully functional. In fact, bugs are being fixed at an exponential rate. Neowin previously reported on a possible Community Technical Preview for Windows 8. That does not appear like it will happen. Instead, Microsoft appears to be working on having something ready for its BUILD Developer conference (September 13th to 16th).
It also appears that Microsoft is working on a ton of new Live services and integrating them with Windows 8. Windows 8 and Windows Live are not synchronized in terms of development. Windows Live is currently in a Milestone 2 coding phase, with Milestone 1 bits currently being deployed into Windows 8. The company is simply leveraging the code base of Windows Live to make things work in Windows 8. We can safely assume that we will hear more about Windows 8's cloud features during the Worldwide Partner Conference next week as well as during the BUILD conference.