What SDK should be installed in the server to intigrate Windows Live with your web application?

Passport manager is depreciated and now RPS is required to implement Windows Live single sign on.

The Windows Live ID Server SDK—also known as the Relying Party Suite (RPS) SDK—makes it easier and cheaper to develop a new Microsoft Live service by providing interfaces that prepare authentication requests, decrypt, parse, and validate security tokens, and manage authentication-state cache in a browser session