SkyDrive is a free online storage service offered by Microsoft. If you have a "Windows Live ID" (i.e. a Hotmail, MSN or Live account) you can try this out right now if you like.
This service gives you 5GB of online storage and it works for most that need a quick solution to store stuff online. It also allows for easy ability to share files out as well.
Here’s the good and bad of the service:
1. Shareable name does not follow your Spaces name.
I have a Windows Spaces name, it’s richmenga.spaces.live.com. Easy enough to remember. However SkyDrive doesn’t follow that.
Here’s my public SkyDrive address:
https://cid-8d261682ad54bd2c.skydrive.live.com/home.aspx
Yeah, umm.. this is pretty bad. It looks like a spam link – but it isn’t. That is my actual SkyDrive public address.
It should be richmenga.skydrive.live.com. Granted, that’s still a bit long but would be a ton better than what I’m given.
When you share out files, the names used in the URL are just as bad.
2. No drag, drop or move ability for files.
When you put a file into a folder – any folder – that’s it. It stays there. You can’t move it to any other folder you have. And there’s no drag/drop functionality inside the service at all.
3. Skydrive.com isn’t even owned by Microsoft(!)
Instead it goes to "Auto Europe Discount Car Rentals".
Crappy. If this service keeps the SkyDrive name this will be an endless source of confusion.
4. Easy to upload
It is easy to upload files to the SkyDrive service and it works well.
5. Easy to share
You can share files out easily also.
6. Easy to use
Aside from the fact you can’t move/drag/drop, this service is easy. In addition you always are made aware of how much space you have remaining via a small bar on the right when inside the service.
7. Ability to embed files/folders in your blog or web site VERY cool
With any file or folder, you can generate a link with code to put in your blog or web site. This is a nice simple way to get people to your public shareable files easily (compared to those crazy malformed-looking links).
For example, you could take one of my files and hit the "Embed" button above the file name. You are then given code that you can easily post afterwards.
You can do the same thing with folders too.
Verdict
Being that pretty much everyone has a Hotmail account (whether you use it or not), this is a super-easy way to get 5GB of shareable (or private) online storage.
If/when Microsoft puts in the ability to move files and drag/drop ability, it’ll be tough to beat.

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I’ve had a Skydrive account for awhile and love it!
It’s definitely one of the best online storage sites around when it comes to cost (free – duh, can’t get much cheaper than that) and ease if use.
I use it to upload files for my relatives back in Australia and they can download them whenever they want without clogging up their email.
I agree that a drag-and-drop feature would make it much more user friendly if it were to be implemented though.
Microsoft has an opportunity to make this a killer tool. They should link their sync.live.com product to this. That way, you could like a folder on your PC and have it stay in sync with a folder in skydrive. They should also support changes made on the local sync to propagate thus fixing the drag drop limitation.