Today, Microsoft released its latest revision to the Windows Live SkyDrive file hosting and sharing platform. As a result of the change, the user storage limits have been reduced from 25GB to 7GB. If you have an existing Windows Live ID, then as a loyalty reward, you can get a free upgrade to 25GB, allowing you to keep your existing storage limit.
To do this, simply login to SkyDrive at http://skydrive.live.com, login as normal and select the Upgrade banner near the top of page. Hurry though as this is being reported as a limited time offer.