What was Windows Live Folders is now Windows Live SkyDrive Beta, 500MB of glorious online storage with Shared, Personal and Public Folders. I've put it to great use already as I needed to share some pretty hefty files with my colleague Westie. Get signed up now!
You can even download plug-ins to integrate your SkyDrive with Windows Live Writer and Windows Live Spaces. You can find more information at the Windows Live blog, LiveSide.net.