Take the MSN driving directions, overlay them on Terraserver satellite image data and pinpoint the location of local businesses in the neighborhood you’re in and you’ll have some idea what Virtual Earth is accomplishing. We got the chance to play with the beta at Where 2.0 and out of the gate I think Microsoft may have a leg up on Google Maps. Add some slick features that can locate where you are on the map, which is useful if you’re in a hotel and looking for a decent restaurant and the ability to blog mapping directions to MSN Spaces and Virtual Earth really starts to look interesting. A scratch pad keeps track of the places you looking for and can automatically plan the best route between multiple destinations with almost no hassle. The service is still under development slated for release later this summer, although Chandu Thota’s WebLog seems to be filled with details. Another key individual behind the Virtual Earth project, Steve Lombardi, spent some time with Chris talking about Virtual Earth at Where 2.0.

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