I would imagine that your problem is with the hosting you have chosen - don't know what you can do with office live but I don't imagine that they have PHP support. Also you'll need FTP at least to be able to install some kind of forum.
I'm pretty sure they don't have FTP, PHP, and probably not got more than a GED.

(Own) But seriously though, it's like Freewebs but with a domain name.
And I do mean that in basically every way. They give you Live Person-to-Person Help, and a FREE website, except that
Office Live gives your OWN domain name. Seriously, the second day after using I explored a bit more on the extra parts of administration...and thought they were charging me on my Credit Card, and I said "Cancel my Account" basically, but they
actually e-mailed me to tell me it was a free service, and that the card was
really only needed it for verification (to make sure I was a real person), and frankly, I was astounded. Even though they don't have ANYTHING, I guess you get what you pay for.