There are reports - and even a review! - on liveside.net.
Initially it will allow users to store 500MB online, but since this will be a beta I imagine this limit will be higher in the actual service, and probably you could even purchase additional storage.
The review doesn't say how this service interacts with FolderShare a folder synchronisation and sharing tool acquired by Microsoft a couple of years ago. FolderShare promised lots because of its delta sharing capabilities, though Microsoft removed that functionality because it was based on open-source in the original software.
Windows Live Folders allows you to create private, public and shared folders. Everything is done through the browser.
It looks interesting but it probably requires lots of management, otherwise you will end up filling it fast. My Canon D-SLR currently holds a 2GB SD card, and have two 1GB spare cards. If I take a full card of pictures Windows Live Folders wouldn't have enough space to store it. But for people with office documents this could be ideal.
The login page has been down for a while, but it should be open to beta testers soon.
As usual, we can only draw conclusions when the beta is completed and the final product emerges.
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