We've just announced the beta of our SkyDrive service (previously known with the far less cool name of Windows Live Folders). For every Live ID you get 500MB of storage space to play with. Take a look and see what you think, this is going to be really useful.
And make sure you install the little ActiveX control so you can use drag and drop to upload files. You'll find this when you select the "add files" option - there will be a banner at the bottom of the page saying "want to upload more than 5 files at a time?". Click that to install the control and start dragging files onto the web page.
It's a cool service and the name is great too - we are *definitely* getting better at naming our products.
Oh and I should add: the UK is one of the regions where SkyDrive is available, the other two being the US and India. Great news for us UK types!