Google’s Keyhole is neat but unless one is zooming in on high resolution areas it’s not that easy to see much actual camera detail of the surface. In the spirit of competition where the customer usually benefits, Microsoft wants to improve upon this by utilyzing a company named Pictometry which takes pictures via a light aircraft at a 45 degree angle. This new service currently in development is tentatively being called MSN Virtual Earth.

Microsoft has signed a five year deal with Pictometry to use the company’s US-based aerial imagery in MSN Virtual Earth. “With Microsoft’s use of Pictometry imagery incorporated into MSN Virtual Earth, customers will literally see around everything they search for online where Pictometry images are available,” said Richard Kaplan, the president and chief executive officer of Pictometry. “MSN Virtual Earth will redefine the way people find, discover and plan activities.

Sounds interesting. Wonder how far this is off? Will it be fee-based like Keyhole? I’m guessing yes. Sounds like this could provide a really cool tie-in to products like Streets & Trips someday. We’ll have to wait and see.