Windows live introduce 5 GB SkyDrive that acts like a online hard drive. In the Windows Experionce Blog they mentioned it as 25GB. So it is basically between 5GB to 25 GB storage.
Couple of good features of SKyDrive is
* you can download photos directly to Windows Live Photo Gallery
* Download as a Zip file
* Move/Copy files between folders.
* Share files directly from the SkyDrive
* Public file share or share with your freinds.
So if you want to keep a reasanble online disk space SkyDrive might be a good option.