I did a quick test of Microsoft's new Skydrive service last night. It appears that Microsoft provides about 1 GB of storage for each Live account, with a cap of 30 MB per file. Microsoft allows you to create your own custom link to your content ala http://xyzzy.spaces.live.com/ where xyzzy is a name you can choose.
Only complaints? I could not upload more than one file at a time for some reason, and the site was slow (perhaps because there were a lot of users at time of launch?) Anyway, you may want to check out the service to back up some of your media.