I signed up for microsoft office live and got their free domain name registration. I decided that their service is to plain. Can i change my domain name servers to somewhere else? If so, how do i do it?

If they are sup[plying this as part of a hosting deal you may not be able to move it. They would want a fee to transfer the domain name out as they have had to pay for it. You would also probably need then to pay for the domain.