MS is revamping SkyDrive, presumably to compete with Dropbox and with Google's (rumoured) upcoming Cloud service.
Previously, there were two things: SkyDrive for cloud storage, Live Mesh for file syncing. Now there is just one unified service for both: SkyDrive.
MS is adding paid storage options, with tiers giving an additional 20GB, 50GB, and 100GB of storage.
New users get 7GB for free.
Existing users? They currently get 25GB
, and can continue to do so for free if they hurry up and opt in
There is a new desktop client, for synching (like Dropbox), to bring the Live Mesh side into the fold.
The mobile apps are also getting updates.