Organizing and accessing contact information in Outlook.com
WRONG!
The point is, we want to add photo's to a desktop outlook client or mobile client and have the photo change propagated to Outlook.com. At present, it does not work.
You can't even add a photo to a contact using the People hub in Outlook.com which shows that MS want nothing to do with photo's at all (they'll show linked contact photo's i.e. you link your Gmail account contacts to the people hub and it will 'merge' the records and display the photo's that are held in Gmail).
Still a joke.