The module is now obsolete. New frameworks such as comet or HTML5's websockets should be used instead.
Live Update is a module that provides a flexible and scalable to provide up to date in content to users without requiring page refreshes. Live Update uses JQuery to poll lightweight text files that tell the users' browser if new content is available. If so, JQuery then makes another call to get the updated content stored as static HTML.
A blog post detailing how one might use this API to set up a Question and Answer (similar to our PBS Engage work) scenerio is here
API
Live Update provides a simple API for modules hook into and allow Drupal to store, retrieve and insert content updates of all kinds. The API breaks down into two basic functions:
Telling the browser how and where to look for updates and what do to when you found them.
This is the theme of my color based Admire series. Its a wide (around 996px) and fixed width theme for those who are looking for high quality, clean and web2.0 style theme for their Drupal CMS.