Microsoft Live newsletter announced that they will soon offer 25GB of free web space on their SkyDrive service. From what I can see, space is in abundance at the moment. :)
The problem I have with SkyDrive is not the total amount of space available but the size of individual files allowed to be uploaded. I have an e-book I want to make available for download but the size is 140MB and there are only a very few reliable free services that allow that file to be uploaded. Hopefully the space upgrade will allow larger files to be hosted on SkyDrive, as well.