I developed a Custom application that is able to consume the CRM Web services and perform Windows Live Id authentication, create, read and update operation in the CRM from the c
If you are deploying this to Windows Azure then make sure "copy local" is set to true on the Microsoft.IdentityModel when you deploy to Azure.
-----------**Update**----------------------------
Cloud Tip #9-Add Microsoft.IdentityModel to the GAC with a Startup Task
http://blogs.msdn.com/b/benko/archive/2012/04/07/cloud-tip-9-add-microsoft-identitymodel-to-the-gac-with-a-startup-task.aspx
This should help...