I wanted my students to have a place to store their assignments in the cloud so, yes, I did have them all create Office Live Workspace Accounts. Then I had them submit some assignments as shared documents so I could comment on them, but I soon saw the error in that approach. Eventually, we got to sharing documents within their shared workspaces. The best thing for the students turned out to be the remote storage with wherever access. Grading documents online is too slow, though. Will still have to kill trees.
I'll try linking duplicate workspaces, but I'd also be interested in knowing why the students don't need their own account. By the way, I did follow Roni's suggestion for deleting the 200 or so shared documents and workspaces in the Shared with Me section.
Thanks for the suggestions.
clw