I have achieved this to some extent – Spaces support posting by email, so I simply wrote a WP plugin that an email off to the Space every time I create a post. It simply contains a link to the post’s permalink. As a result of the Space updating, the indicator icon in MSN Messenger lights up and allows contacts to see the blog has a new entry. They just have to click through from the Space through to WP which is no big deal. Bit crude but it does the job for me!
I haven’t had chance to have a proper look through the MSN7 API yet to see if the indicator can be triggered manually or not; if it can, then there may well be an alternative option which doesn’t require ‘duplicate’ posting. I suspect it may be a little trickier than it might first appear on the surface though.