I have been messing around with a number of the MS initial cloud offerings, not the Azure stuff but offerings that are ‘real today’.
So in no particular order:
Skydrive: 25GB of free online storage
Live Mesh: Sync, share and Access files across multiple devices – 5GB of online storage
Live Sync: Sync, share and Access files across Windows. MAC, Linux systems – no storage
So putting it simply: if you want to have ‘in the cloud’ storage use Skydrive, if you simply want to sync files across machines use Live Sync and if you want to have a copy in the cloud of what you sync then Live Mesh is for you.
For me, I use all three!!!