MSN Sandbox is a similar to Google Labs - where you get to see a sneak preview of the latest offerings from Microsoft/MSN.
Some of the offerings at the moment are a download of Lookout (which Microsoft recently acquired), MSN Search Technology Preview - a competitor to Google search, and Newsbot - an experimental automated news service.
Other interesting things include MSN Toolbar - similar to Google toolbar, a software called 3-degrees - which seems like an interesting new way for peer-to-peer connect, NetScan - a tool for data mining Usenet newsgroups, and TerraServer and TerraService - the old map site from Microsoft.