Windows Live offers 7GB of free online storage. And the good news is you can use this space setup as a folder on your computer.
1. Goto https://skydrive.live.com
2. Enter your windows live id credentials.
3. Follow the video tutorial to setup Skydrive folder on your computer.
Note: old users of skydrive can claim 25GB of free storage. login to your skydrive account for further details.