To compose a new e-mail message, click Message -> Compose from Contacts Live Mail toolbar. “Compose Message” page opens up where you can add subject and text of your message using either standard text (click Text tab) or HTML editor (click HTML tab).

Contacts Live Mail built-in HTML editor does not require any prior HTML experience and allows you to create messages in WYSIWYG mode (What You See Is What You Get):

Contacts Live Mail HTML editor