Greg Nelson, who has had the thankless job of running MSN for Microsoft, has left that position and been given the even more thankless task of running the integration of the complex search and online advertising partnership struck by the software giant and Yahoo.

Nelson’s counterpart at Yahoo, according to sources, will be Mark Morrissey, who is currently SVP of Products at the Internet giant.

The pair–pictured above, with Morrissey on left, Nelson on right–will have their hands full in what will ultimately be a two-year effort.

BoomTown’s title for the relationship: A Couple of White Geek Guys Sitting Around Arguing!

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It certainly is good to see Microsoft working the innovation thing, especially in the consumer space with its Bing search service.

The ultimate goal is to gain market share for Bing, from striking deals with hotter companies like Twitter and Facebook to doing a massive advertising and marketing campaign to making constant feature upgrades.

This is one of those weeks for Bing, with the launch of a spate of new features that show a lot of chutzpah.

But whether all this will spell significant changes in market share compared to dominant rival Google is still an open question.

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The new MSN homepage debuts tonight and you would be completely correct in thinking the recipe Microsoft has cooked up to inform its design ethos–white, clean and hiply modern–has definite echoes of a certain longtime tech rival.

That would be Apple, of course, with a big dollop of Twitter and Facebook tossed in, and finished off with a generous sprinkling of Microsoft’s new Bing search service.

For those who care: The MSN butterfly logo remains, although it appears to have lost a lot of weight.

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Here is a video interview BoomTown did with Bob Visse, GM of MSN Product Management today at Microsoft’s offices in San Francisco.

The new MSN homepage debuts tonight with a redesign cutting clutter, adding the ability to access both Facebook and Twitter, a local focus and with Microsoft’s new Bing search service everywhere.

Also, some Microsoft interviews with MSN staff about the changes.

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Microsoft’s MSN is in preliminary talks with MySpace about using the social networking site’s music service, MySpace Music, to power music offerings on the giant portal.

While sources at both companies cautioned that the talks are still early, Microsoft–which has its own music site that it programs with original and partnered content–execs are interested in goosing its offering.

That’s because MSN Music consistently ranks substantially lower than other big online music properties in terms of traffic, while MySpace Music is always near the top.

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MSN, Microsoft’s online portal, released a beta version of a service to let users manage their health information on the Web.

Called My Health Info, the Microsoft offering, which includes a range of widgets and other Web tools, wades into an area that many are attempting to crack, including Google.

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It looks like the local market is heating up even more, with MSNBC.com announcing the acquisition of Chicago-based EveryBlock.

Sources said MSNBC.com–a joint venture of Microsoft and NBC Universal–paid several million dollars for the “hyper-local” information site, which is up and running in 15 cities, including New York, San Francisco, Seattle, Chicago and Boston.

In June, Time Warner online unit AOL paid about $10 million to buy Patch Media, a platform that does deeply localized coverage of communities on a range of topics.

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Multiple sources close to the situation said that the online search and advertising deal between Microsoft and Yahoo has been struck and will be announced within the next 24 hours.

While it is not clear if the actual papers have been inked or approved by the boards of the two companies, sources said it was a formality and that negotiations are complete on a deal that is less sweeping than originally conceived.

In any case, making any partnership is likely to be the cause of much relief at both companies, since they have been trying–without success–to join together to mount a better offense in the search sector against the dominant Google.

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The edging-ever-closer-to-consummation deal talks with Yahoo about an online advertising and search partnership and the aggressive marketing of its new Bing search service aren’t the only things going on for Microsoft’s online services business.

MSN, Microsoft’s online portal, is also preparing a major redo of what U.S. and, possibly, international consumers will see, as it doubles down on five key content verticals, while cutting back on others.

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Yahoo’s SVP of Northern American Audience, Jeff Dossett, is leaving the company.

Reasons for the departure are personal, said sources, who said that Dossett is most likely to do a start-up.

Dossett did not return emails asking for comment, but Yahoo confirmed his resignation to BoomTown.

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What’s in a name?

Well, a lot, actually, and BoomTown supposes it would be just like those Pacific Northwest types at Microsoft to name the new version of its search service “Bing,” presumably after the cherry that is a big product in the company’s home state.

That moniker is one of many being bandied about in a group the software giant could be considering for the big relaunch of its search service, which it has been prepping.

But Microsoft should forget the fruity metaphor, also rename its MSN online service “Bada” and use this motto: “Bada Bing, Bada Boom, Notta Bada Algorithm!”

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Just after he got the job 10 days ago, BoomTown got the chance to chitty-chat a bit with Scott Moore, the former Yahoo media chief, who is returning to Microsoft, where he will lead its online content efforts for the U.S for its MSN online service.

Apparently, you can go home again!

It’s a touché tale because it feels like Moore was pretty much rehired by MSN exec Greg Nelson (also in on the conversation with Moore) to give Yahoo a wallop where it really will hurt–its powerful content business, one of Yahoo’s only bright spots.

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In an interesting and innovative move compared to what has typically been less-than-hip online programming over the years, Microsoft’s MSN service is debuting a slick new celebrity site called Wonderwall today–created, designed and produced by a Hollywood company run by former Yahoo media chief and well-known television exec Lloyd Braun.

Using an unusual horizontal design with a scrolling “wall,” a plethora of pictures and a deeply visual sensibility, it’s definitely a laudable risk for Microsoft, as the company seeks to continue to push itself into the online content business, despite a lackluster record.

But will this time be wonderful?

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In an unusual homecoming and odd job switcheroo between two Internet execs, former Yahoo media head Scott Moore is returning to Microsoft to lead its content efforts, according to many sources both inside and outside the company.

Moore will become U.S. executive producer, responsible for leading the content and programming strategy for the MSN online service. He will return to Microsoft’s Seattle area HQ in mid-March and report to Greg Nelson, GM of the MSN Global Media Group.

Moore left Yahoo late last year due to unhappiness over the turmoil at the company and to pursue a start-up idea he had.

He was replaced at Yahoo–in a rushed appointment–by Jeff Dossett, who came, wait for it, from Microsoft, where he held the job Moore is now taking.

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According to several sources, more restructuring is about to hit Microsoft’s online division as various departments are moved among and between its top execs, with changes to be announced as early as today.

While BoomTown is still gathering information, it looks like longtime Microsoft exec Yusuf Mehdi, who is now in charge of marketing, online audience business development and product management for MSN and the search properties, will get more added to his portfolio, including overall business development for the online properties.

Mehdi could eventually get purview over programming for MSN too, said several sources.

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