UPDATE: 12/15/2012: Microsoft has taken down the video explaining how to set up proofs, so follow our guide to configuring Xbox Live security proofs.
Microsoft has recently been promoting their security proofs for your Live ID as the best method to prevent account theft or hacking. I must say, I have found it to be a great way to ensure your information is secure and that nobody is just going to ‘guess’ your password by knowing something about you. Click the link above, or watch the embedded video, and then visit http://accounts.live.com/proofs to update your settings!