AccountKiller
Direct removal link: https://account.live.com/CloseAccount.aspx
Publicly visible text/images often aren't properly deleted even when you succeed in deleting an account. Try editing or deleting them manually before deleting the account itself. If you're unsure what happens to your tracks: this can be found mostly in the Terms of Service/Privacy Policy; otherwise you can always contact Windows Live and ask personally. By the way, deletion requests don't necessarily mean your data will actually be deleted (e.g. due to legal obligations).