http://sts.labs.live.com/ does not presently support the June CTP of WinFX, we are working on an update to the site that should be released in the near future.
There are also a couple of known issues with CardSpace (was InfoCard) in the June CTP:
InfoWorld has discovered the Microsoft Live Labs STS. This wasn't by design, we're keeping a low-profile at the moment while we work through early teething problems.
Speaking of which, we posted a Known Issues page today that covers some of the problems that you might experience when working with the site and the STS itself. We also tweaked the site a little to handle Windows Live ID authentication problems in a more graceful fashion.
We've opened the doors on our experimental Security Token Service today, you can find all the details here.
For the moment, the focus of the STS is on using the InfoCard technology in WinFX Beta 2 to enable authentication with the STS and to obtain a security token from it (SAML 1.1).
Of course, an STS isn't much use without sites or services that use it for authentication, so we've also enabled the Microsoft Live Labs Relay Service to use the STS. Better still, we allow you to register your own site or service and federate with the STS yourself.
Over the coming weeks and months, we are planning a series of incremental feature releases for both the STS and the Relay service.
The official blog for the STS is here; the blog for the Relay is here.
A couple of documents worth reading to get some context on what we're doing in the Identity space:
The Identity MetaSystem
The Laws of Identity