LiveSide has posted details and screenshots about Microsoft’s upcoming online storage service, Windows Live Folders (aka Live Drive). Windows Live Folders, which was briefly available at folders.live.com, aims to provide upto 250MB of online storage space (which may be increased later on) and a maximum file upload size limit of 50MB. There are three types of folders that can be created:

Private: Files can be accessed only by yourself
Shared:Select friends and familiy members with whom you want to share the files
Public: Each file uploaded has a public web address (URL) using which anyone can access that particular file

You will need to sign in to Windows Live folders using a Windows Live ID. Currently the website is offline but keep a tab on folders.live.com or get.live.com/betas/home for any updates as it is due any moment.
At the moment only Microsoft’s Live Search contains a cache of folders.live.com but it contains nothing more than a redirect to Windows Live Beta homepage.