Microsoft has given me 25Gb free on Skydrive as an existing (free) customer. They upped it when Google announced its new service.

I haven't tried the application but I've found it won't accept encrypted files via web upload. I get the message that uploading folders isn't allowed. It's quite amusing that they expect stuff to be uploaded unencrypted and that limits the usefulness.

Also most of us have such a slow upload speed. That rules out using it to backup many of the important things.