MSN Spaces have announced a range of feature upgrades for the world’s second largest blogging service after Xanga.com.

The upgrade introduces a number of “PowerToys”, that include custom HTML modules, the ability to play audio and video files, and significant upgrades that allow extra customization to the look of Spaces blogs.

The changes are being pitched at “advanced users”, and include the ability to actually to do things that other blogging companies and blogware currently offer, such as customized headers and graphics.

The new offering may well see the MSN Space’s service become a serious threat to exisiting players in the blog market place, including SixApart and Google’s Blogger.