I am confused. I look through my web analytics report and still see that MSN Live is still referring traffic as well as Bing. So MSN have two search engines. Please explain. Thanks!

i think that they are related and few months ago i noticed Bing uses MSN engine but i might be wrong

No, Bing and MSN provides different search results.

No Bing and MSN provides different search results because both has it's own algorithm.