Thanks to tipster (tips*at*liveside*dot*net) Liam, it looks like we're about to see a significant upgrade to the online storage feature from Windows Live, SkyDrive, to 5gb free:

We've called for an increase in the storage capacity, if only to make a splash in the marketplace, and this upcoming announcement (at least we hope they make an announcement, the translucency veil around Windows Live seems to have thickened recently) is a good start in that direction.  We're expecting the service to come out of beta, possibly as early as next week, although nothing is for certain at this point.  Hopefully the access to SkyDrive will be broader, as well, opening up to more countries as it comes out of beta, which is fairly standard procedure.

You can check out SkyDrive (currently in beta at 1gb free) from the home page, or via your Windows Live Spaces account.

UPDATE (2/21 -10:21am pst):  We just checked our LiveSide on Spaces SkyDrive account, and indeed we're at 5gb :

And Yay! the SkyDrive team has posted, great work guys!: SkyDrive now out of Beta