Long story short: no.
What happened: A Live ID will expire if not used for an extended period of time. I've seen various figures for how long, but 18 months is comfortably larger than the largest of them. Services like Xbox Live and Live custom domains are tied to a token, rather
than the ID itself, for daily use, so they continue to work even after the ID expires and is removed. Thus, if you create a Windows Home Server vanity URL tied to a particular Live ID, even after that ID expires and is removed the vanity URL continues to function,
because all that gets exchanged to update the dynamic DNS server is the token, not the actual ID. If you try to do anything but renew the vanity URL (for instance switch to a new server), you need to authenticate again, and you can't.
As for getting the domain released, that will happen eventually. It will take time, however, and unfortunately I can't say exactly how long that will be. Probably it will be weeks or even longer.
I'm not on the WHS team, I just post a lot. :)
