Currently I'm using the following services for online storage
- Mesh - 5 GB, free
Synching between several desktops, plus the files are stored online - SkyDrive - 25 GB, free
Online storage, take a look at Gladinet, if You need integration in Your file system - Picasa Web – 1 GB, free, Photos
Both are Microsoft Live services, so you need a Live Login to access them.
For pictures I'm using my Picasa with my Google account - up to now the 1 GB provided by Google for free are sufficient. If I need more I will use the storage in my SkyDrive account. Up to now I didn’t look further into Windows Live Photo Gallery, Microsofts alternative to Desktop Picasa from Google.
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