CNet reports the launch of Virtual Earth 3D, a component of Live Search that integrates three-dimensional models of 15 U.S. cities (so far) into search results — a flyover/Flight Simulator view, I suppose. Comes with virtual billboards for advertising. Microsoft’s press release is here.

Update, 6:25 PM: The WLL/Virtual Earth blog has more, including a great big screenshot and a movie (Windows Media).